“Ryanair Shares Rise, Summer Fares Stable”

Ryanair’s stock surged Tuesday as Michael O’Leary, the airline’s CEO, indicated in an interview that a steep decline in average ticket prices may have been mitigated. In Dublin, the airline’s stock price spiked to nearly €16.04, an increase of up to 6.1% in morning trades. According to comments he made to Reuters, Mr O’Leary no longer anticipates a drastic reduction in average summer fares, believing a 5% decrease is a more accurate forecast.

This boost in share price follows a significant 17% tumble five weeks ago when Ryanair cautioned that fares would likely be significantly lower throughout the important summer season, echoing the preceding trend of a 15% reduction in average fares from April to June.

In additional news, Ryanair announced that it executed its €700 million share repurchase plan, initiated in May, resulting in 38.6 million shares, comprising underlying American Depository Shares, being bought back and rescinded. It plans to start another share buyback programme, enlisting Davy to buy back as much as €800 million of its shares in the free market by May of next year.

Mr O’Leary also indicated that the airline’s dealings with Boeing’s new leadership have been challenging, with aircraft deliveries still lagging behind schedule. The prospect of receiving only 20-25 of the 737 MAX planes before the next summer, rather than the planned 29, was cited by him in his conversation with Reuters. However, Eddie Wilson, CEO of Ryanair DAC, part of the larger group, suggested confidence in Boeing resolving its manufacturing issues.

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