Ryanair Expands Share Buyback Program Amid Boeing Delays

Ryanair has announced a new share buyback program, leveraging surplus cash resulting from delays in aircraft deliveries from Boeing. The airline plans to repurchase up to EUR 800 million (US$873 million) worth of its shares over the next six to nine months, a significant increase from the EUR 700 million buyback program it initiated in May 2024. This decision, detailed in a recent securities filing, comes as Ryanair faces a two-year period without new aircraft deliveries, from mid-2025 to mid-2027.

The airline's move to use its surplus cash for shareholder returns is a strategic response to ongoing delays in Boeing's delivery of 737 MAX jets. These delays, caused by production setbacks including a regulator-imposed slow down following a door plug blowout earlier in the year, have left Ryanair waiting for 204 planes. Despite initially supporting Boeing amid the blowout scandal, Ryanair CEO Michael O’Leary has reverted to his critical stance, famously describing Boeing’s management as “running around like headless chickens” and suggesting the company needed “a reboot or a boot in the arse.”

“As Ryanair faces 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 airline stated in its communication to investors.  This improved cash position has led to the expansion of the share buyback program, benefiting shareholders directly.

The airline's stock price has already risen by 4.4% following the announcement, reflecting strong investor confidence in Ryanair’s ability to manage these delays while enhancing shareholder value. Ryanair anticipates a surge in aircraft deliveries starting late 2027.