Ryanair is considering the delisting from Dublin, respectively the transfer to Euronext Brussels

English Section / 26 septembrie

Ryanair is considering the delisting from Dublin, respectively the transfer to Euronext Brussels

Airline - unhappy with Irish listing rules

Versiunea în limba română

Irish low-cost airline Ryanair is considering transferring its listing from the Dublin Stock Exchange to the Brussels Stock Exchange, simpleflying.com reports, noting that such a move would be "unfortunate" for Ireland, given the carrier's base operational and a significant presence in Dublin.

Ryanair boss Michael O'Leary was recently quoted by the Sunday Times as saying that the airline is considering a move to the Brussels Stock Exchange, citing the high level of stamp duty for share trading as a major factor. calculation in a potential move away from the Irish market. At the same time, O'Leary believes that the Euronext Dublin market is still too closely aligned with the governance rules of the London Stock Exchange (LSE), while the regulations of other European exchanges are "simpler".

"There is no reason why we should be a Dublin-listed company rather than a Brussels-listed company," O'Leary told the Sunday Times, calling for changes to the Irish market, including its governance.

However, Michael O'Leary said the airline remains currently listed on the Irish Stock Exchange. According to international media, there are currently no official plans to transfer Ryanair's listing from Dublin to Brussels.

The news of the possible move comes after the airline announced that Dublin Airport will lose more than 15 routes and almost 20 aircraft due to a nearly 50% increase in costs by the airport operator.

The executive of the airline also stated that, although Dublin is included in the pan-European group Euronext, the largest stock market group in Europe, the Irish stock market is - after Great Britain left the European Union - "too aligned" to London's governance rules.

Ryanair accuses Dublin Airport Authority of wasting taxpayers' money

Ryanair has accused Dublin Airport Authority (DAA - the airport's operator) of wasting euro250 million - taxpayers' money - on an underground cargo tunnel at Dublin Airport, according to simpleflying.com. The tunnel will allow the airport's vehicles to travel between the east and west areas of the airport, under the north runway, which is now operational. Dublin Airport Authority proposed the tunnel in September 2022 and received the green light for its construction earlier this year, according to the Irish Independent. The tunnel is expected to be completed in 2024.

Ryanair criticized the entity on the social media platform X, pointing out that "Dublin Airport Authority is making Dublin Airport uncompetitive by increasing airport taxes by 45%". In addition, the company believes that the airport operator "does not offer airlines any incentive to increase traffic". Ryanair also claims that "the emergence of the tunnel proposed by the DAA is bad for passengers, bad for jobs, bad for connectivity and bad for the growth of the Irish economy".

Ryanair, delisted from the London Stock Exchange in 2021

In November 2021, Ryanair announced it would delist from the London Stock Exchange (LSE), becoming the first major company to blame Brexit for its departure. The last trading day for Ryanair shares on the LSE was December 17, 2021. Since then, Ryanair's securities are listed on Euronext Dublin, and American depositary receipts (ADRs) - on Nasdaq USA.

The low-cost airline reported, in July, a net profit of 663 million euros for the first quarter of the current fiscal year, an increase of almost four times compared to the net profit of 170 million euros recorded in the same period of the year last. The advance was due to the increase in traffic and the price of plane tickets. According to Ryanair, the number of passengers transported by the company increased by 11% in the quarter ended June 30, 2023, reaching 50.4 million, so that total revenues increased by 40%, to 3.65 billion euros.

However, Ryanair pointed out that the pace of growth has started to ease into single digits, so the company may have to take action on ticket prices to boost demand as consumers face pressure on part of the costs.

For the entire fiscal year 2024, Ryanair shows cautious optimism, anticipating that it will register a 9% increase in traffic, up to 183.5 million passengers, compared to the 185 million passengers it initially estimated. The reason for the caution is the delays in the delivery of the planes ordered from the American manufacturer Boeing Co.