Ryanair Holdings PLC (LSE:RYA) boss Michael O'Leary said a "recessionary feel" in Europe was a possible reason for the softer growth in air fares in recent weeks. This morning's results again flagged that the strong price rises seen last year were easing off, which followed O'Leary's update from two weeks ago, where he said summer fares were not likely to see the 5% to 10% rise that he had initially expected last month.
Full-year results from Ryanair were in line with previous guidance but with the airline surprised investors and analysts with its share buyback and dividend. A €700 million share buyback is set to begin later this week and the introduction of a dividend, n int.
Ryanair Holdings plans to buyback 700 million euros ($760.9 million) worth of shares after a rise in earnings, and said that it expects passenger numbers to increase this year depending on how well Boeing handles its delivery delays.
Dublin-based Ryanair said full-year profit after tax jumped 34% and announced a 700-million-euro share buyback program.
Ryanair on Monday posted a 34% year-on-year increase in annual profit to a record 1.92 billion euros ($2.09 billion), and expressed "cautious optimism" that peak summer fares would be flat to modestly ahead of last year.