Ryanair Announces Follow-On Buyback Of Up To €800M; Expects To Complete Current €700M Share Buyback By End Of August; Will Request Shareholder Approval To Increase Annual Buyback Authority To 15% Of Issued Share Capital; Cashflows Improved Due To Strong Traffic Growth And Boeing Delivery Delays; Faces No New Aircraft Deliveries From Mid-2025 To Mid-2027; Expects Short-Term Cashflow Boost From Temporary Cut In Aircraft Capex
Portfolio Pulse from Benzinga Newsdesk
Ryanair has announced a follow-on buyback of up to €800M and expects to complete its current €700M share buyback by the end of August. The company will seek shareholder approval to increase its annual buyback authority to 15% of issued share capital. Improved cashflows are attributed to strong traffic growth and Boeing delivery delays. Ryanair faces no new aircraft deliveries from mid-2025 to mid-2027 and expects a short-term cashflow boost from a temporary cut in aircraft capex.
August 08, 2024 | 3:04 pm
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POSITIVE IMPACT
Ryanair's announcement of a follow-on buyback of up to €800M and the completion of its current €700M buyback by the end of August is likely to positively impact its stock price in the short term. The company is also seeking shareholder approval to increase its annual buyback authority to 15% of issued share capital. Improved cashflows due to strong traffic growth and Boeing delivery delays, along with a short-term cashflow boost from a temporary cut in aircraft capex, further support a positive outlook.
The follow-on buyback and completion of the current buyback program indicate strong financial health and shareholder value return, which are likely to boost investor confidence and positively impact the stock price. The improved cashflows from strong traffic growth and Boeing delivery delays, along with a temporary cut in aircraft capex, provide additional financial stability.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100