Ryanair Announces €800 Million Buyback and €0.273 Per-Share Dividend
Key Facts
Ryanair announced an interim dividend of €0.273 per share, alongside a new €800 million share buyback programme, as fuel costs weigh on the airline’s profits. The company said the dividend will be paid in late February 2027, while the buyback programme will begin in the same month. The programme is expected to run for about 10 months from late February, subject to market conditions. Ryanair said its board remains committed to shareholder returns, and that the programme’s timing typically coincides with strong cash flows ahead of the summer travel season. The company’s shares opened 2% higher on 2 November, according to Reuters.
The announcement comes as the company’s net profit for the first half of fiscal 2027 fell 15% to €2.15 billion, compared with €2.54 billion in the same period. Ryanair attributed the decline to a doubling in the price of unhedged jet fuel, alongside a 4% drop in the average fare. By contrast, passenger numbers rose 6% to 125.8 million, showing continued traffic growth despite price pressure on profits. Total revenue rose 3% to €10.08 billion in the first half. Ancillary revenue also increased 6% to €3.08 billion, according to the company’s results.
Operating costs rose 10% to €7.69 billion in the first half, and the company said the doubling in the price of unhedged fuel contributed to the increase. This volume represents 20% of the company’s jet fuel requirements, while Ryanair said the expiry of supplier compensation also put pressure on costs. Hedging limits the exposure of a large portion of fuel requirements to price fluctuations, but does not eliminate the effect of the uncovered volume. The company said 80% of its fiscal 2027 requirements are hedged at about $67 a barrel. Coverage for fiscal 2028 was about 25% at close to $95 a barrel, leaving the company more exposed to prices in that year.
Ryanair completed a previous €750 million buyback programme in September, cancelling about 28.6 million shares. In the first half of the fiscal year, it bought back and cancelled about 9.5 million shares under the same programme, at a total cost of €0.2 billion. The cancelled shares equalled about 0.9% of the issued share capital as of 31 March 2026, according to the company. The new programme expands the announced buybacks following completion of the previous programme, while the interim dividend provides another channel for returning money to shareholders. The company had total cash of €2.6 billion on 30 September, alongside about €0.7 billion available from a €1.1 billion revolving credit facility.
On fares, Chief Executive Michael O’Leary said rising fuel costs would push European airlines to raise prices by double digits next year. But he questioned whether Ryanair could achieve the 20% increase needed to offset an estimated €2 billion rise in its fuel bill for the fiscal year ending in March 2028. O’Leary said: "I’m not sure Ryanair will reach the 20% increase needed to fully offset the estimated rise of about €2 billion." He said jet fuel prices could remain high through 2027 unless the Middle East conflict is resolved quickly. This puts the estimated fuel cost for fiscal 2028 against the company’s ability to pass it on to passengers through ticket prices.
As for near-term demand indicators, the company said bookings in the third fiscal quarter are strong, with fares trending slightly above the levels seen in the same period a year earlier. This followed a 2% year-on-year decline in fares in the three months ended September. Ryanair added that passengers continue to book close to departure, leaving fares for the rest of the quarter heavily dependent on the strength of late bookings through Christmas. In the first half, the company attributed the fare decline to Easter not falling entirely in April, and to consumer hesitation and delayed bookings amid the Middle East conflict. These factors remain tied to how bookings and fares develop over the remainder of the quarter, according to the company’s comments.
Ryanair cut its passenger traffic target for fiscal 2027 from 216 million to 214 million, saying the revised flight schedule means winter traffic will be roughly flat year on year between November and March. By contrast, the company plans to increase traffic to more than 220 million passengers in the following fiscal year, a 3% rise. The target is linked to the addition of 16 new Max-10 aircraft to the fleet for the summer 2027 season. The announced expansion comes as the company prepares for the next summer travel season, ahead of which it said cash flows are typically strong. Ryanair expects the new buyback programme to begin in February 2027 and run for about 10 months, depending on market conditions.