Ryanair Holdings Plc (RYA), Europe’s biggest discount airline, bought back 39 million euros ($52 million) worth of stock yesterday as part of a program to use extra cash.
The company bought 9.5 million shares at an average 4.11 euros apiece, Dublin-based Ryanair said today in a statement. That compares with the closing price of 4.20 euros yesterday, when Ryanair stock rose 2.2 percent in the biggest increase since Feb. 15.
The carrier will probably spend 100 million euros to 200 million euros on share buybacks and pay a second special dividend, Chief Executive Officer Michael O’Leary said on a call with analysts Jan. 30.
The highest price Ryanair paid in yesterday’s buyback was 4.13 euros a share, and the lowest price was 4.10 euros, the airline said. After canceling the shares, Ryanair will have 1.46 billion shares in issue.
The carrier raised its full-year profit forecast Jan. 30 after winter capacity cuts helped reduce costs and boost fares. The airline aims to post net income of 480 million euros in the year ending March 31, 40 million euros higher than the previous target.
Ryanair declined as much as 1.2 percent to 4.15 euros and was trading down 0.2 percent at 9:12 a.m. in Dublin. The stock has gained 16 percent this year.
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