Ryanair, a popular airline known for its CEO Michael O’Leary’s complaints about Boeing’s slow plane deliveries, has come up with a new plan. Due to Boeing’s struggles in building planes quickly, Ryanair has decided to invest in alternative ways to use their funds.
In a recent securities filing, Ryanair announced that they will not be receiving any new aircraft deliveries from mid-2025 to mid-2027. As a result, the company expects to have extra cash on hand, allowing them to buy back €800 million ($873 million) more than originally planned. This decision comes as Boeing faces challenges in meeting their orders following regulatory delays earlier this year.
Before these delays, O’Leary had been vocal about his frustrations with Boeing’s management and their inability to deliver planes on time. He even went as far as to say that they needed “a reboot or a boot in the arse.” Despite initially supporting Boeing during their blowout scandal, O’Leary has since returned to criticizing the company for their inefficiencies.
As a result of this news, Ryanair’s stock saw a 4% increase in Thursday trading. This alternative investment plan shows the company’s strategic thinking in maximizing their resources during a period of uncertainty in the aviation industry. By reallocating funds that would have been spent on new aircraft, Ryanair is taking a proactive approach to financial management.
With this new strategy in place, Ryanair is demonstrating their flexibility and adaptability in the face of unforeseen challenges. It will be interesting to see how this investment decision plays out in the long run and whether it will have a positive impact on the company’s financial performance. Despite the setbacks in aircraft deliveries, Ryanair’s innovative approach to financial planning sets them apart as a forward-thinking airline in a competitive market.