Ryanair seeks approval for more share buybacks after Brexit

Budget airline Ryanair will hold an EGM in Dublin on 27 July to seek shareholder approval to engage in further share buybacks over the next 15 months to exploit any share price volatility brought on by the EU’s decision to leave the European Union.

Chief executive officer Michael O’Leary said that if there is further turbulence and share price weakness “then it's sensible that the board has the flexibility to take advantage of these opportunities if it considers that so doing is in the best interests of all shareholders”.

The decision follows sharp fluctuations in the stock in the week since Brexit was announced, which saw the share price fall from €13.68 to less than €11.00 before rising in recent days to close around €11.30 on Thursday.

The company said its board had authorised the repurchase of €150m of shares at an average of just under €11.85 in the immediate aftermath of the UK referendum vote last week.

“We believe repurchases at these levels will enhance shareholder returns, but since we've reached the 5% buyback limit approved at last year's AGM, it is sensible to request approval from shareholders to allow the board consider further share buybacks over the next 15 months should they deem it in the best interests of shareholders to do so.”

At 1155 BST, Ryanair shares were up 2.3% to €11.68.