RYANAIR ANNOUNCE FOLLOW ON SHARE BUYBACK OF €800M
RYANAIR ANNOUNCES FOLLOW ON SHARE BUYBACK OF €800M
AS CASHFLOW IMPROVES DUE TO STRONG TRAFFIC GROWTH
& BOEING DELIVERY DELAYS
The Board of Ryanair Holdings plc today (8 Aug.) announced that while S24 airfares had softened more than expected, cashflows have improved due to strong traffic growth and Boeing delivery delays which has considerably delayed planned capex.
Ryanair now expects to complete its current €700m share buyback by the end of Aug. Given the stronger than expected cash position, the Board has decided to announce a follow-on buyback of up to €800m. This will take total buybacks announced in FY25 to c.€1.5bn. Subject to market rules, Ryanair expects this follow-on buyback will take between 6 and 9 months to complete.
The Board of Ryanair will also request Shareholders (at its Sept. AGM) to approve an increase in the annual buyback authority from 10% of issued share capital, to up to 15% during the 12-month period after each AGM. As Ryanair faces into a 2-year period with no new aircraft deliveries from mid-2025 to mid-2027, it expects cashflow to receive a short term boost due to this temporary cut in aircraft capex. This creates the capacity to extend shareholder returns, which over the last 15 years amounts to c.€8bn (incl. dividends) with over 30% of shares repurchased.
Ryanair's AGM Notice will be published on www.ryanair.com this week and issued to shareholders in the coming days. The 2024 AGM is scheduled for Thurs. 12 Sept.
ENDS
This announcement contains inside information.
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For further information please contact: |
Peter Larkin Ryanair Head of Investor Relations Tel: +353-1-9451212 |
Paul Clifford Drury Tel: +353-1-260-5000 |
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Certain of the information included in this release is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. It is not reasonably possible to itemise all of the many factors and specific events that could affect the outlook and results of an airline operating in the European economy. Among the factors that are subject to change and could significantly impact Ryanair's expected results are the airline pricing environment, fuel costs, competition from new and existing carriers, market prices for the replacement of aircraft, costs associated with environmental, safety and security measures, actions of the Irish, U.K., European Union ("EU") and other governments and their respective regulatory agencies, post-Brexit uncertainties, weather related disruptions, ATC strikes and staffing related disruptions, delays in the delivery of contracted aircraft, fluctuations in currency exchange rates and interest rates, airport access and charges, labour relations, the economic environment of the airline industry, the general economic environment in Ireland, the U.K. and Continental Europe, the general willingness of passengers to travel and other economics, social and political factors, global pandemics such as Covid-19 and unforeseen security events.
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