Ryanair lifts share buyback by a further €800m

(Sharecast News) - Budget airline Ryanair has extended its share buyback plan by €800m due to a stronger-than-expected cash position. The company said that, despite airfares having soften more than anticipated, cash flows have improved due to strong traffic growth, while the ongoing delays in Boeing deliveries have delayed budgeted capital expenditure.

The carrier is on track to complete its current €700m share buyback by the end of August, but has now beefed that up by a further €800m, taking total expected buybacks for the financial year ending March 2025 to €1.5bn, representing 15% of the issued share capital.

Shareholders will need to approve an increase at Ryanair's next annual general meeting on 12 September.

"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," the company said in a statement on Thursday afternoon.

"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."