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Ryanair (NR, BBB+/BBB+) Buyback boosted

TRANSPORTATION

It has said despite softer airfares, the strong traffic growth and delayed Boeing deliveries (pushing capex back) gives it room to start a follow-on buyback of €800m. It had a €700m already so FY moves to €1.5b.

  • Rare sight for a airline to be doing this figure but no concern from us with co reporting a net cash position of €1.7b at the end of June.
  • Reminder Ryanair is in the market doing some aggressive pricing, pushing market yields down and potentially causing more acute stress for co's that don't have the luxury of running its discipline on margins (~10%+).

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