Ryanair starts E800m buyback as plane purchases slow

Ryanair Holdings Plc is embarking on a fresh E800m ($873m) stock buyback as the airline benefits from a stronger cash position amid robust travel demand and aircraft delivery delays that have allowed it to conserve funds. The Irish discount carrier said it now expects to complete its current E700m share buyback by the end of this month, according to a regulatory filing. Ryanair will ask shareholders at its next annual general meeting in September to back an increase in the buyback size to as much as 15% of issued share capital, from previously 10%, it said. Ryanair is heading into a two-year period without new aircraft deliveries, meaning it will have more financial resources at its disposal. “This creates the capacity to extend shareholder returns,” the airline said, which estimated that it has handed out about E8b, including dividends, in the last 15 years. Ryanair is turning the delivery delays of Boeing aircraft into a windfall for shareholders. The company has long lamented the shortfall with new aircraft as its US supplier struggles with output. Boeing’s woes were further exacerbated this year with an additional slowdown in production as the planemaker seeks to improve manufacturing quality. The airline said in November that it would pay out a dividend of E400m, with plans to hand over about a quarter of annual profit to shareholders. Still, the company has lost some momentum in recent months as passengers curtail their travel budgets, and Ryanair said last month that fares in the crucial summer travel period will be “materially lower.”<br/>