Ryanair plans to return cash to shareholders from 2013 as it cuts capital
expenditure by more than 90% after pulling out of talks to buy 200 aircraft from Boeing.

Ryanair, Europe’s biggest low-cost airline and close to being the biggest carrier overall, denied reports it was preparing a third bid for rival Aer Lingus.

“In the absence of any decision by the Irish government to sell its 25 percent stake, a third bid by Ryanair remains highly unlikely,” Ryanair said in a statement on Thursday ahead of an investor briefing.

Ryanair’s passenger traffic in December grew 12% to 4.9 million, bringing the number for the whole calendar year to 65.3 million, which it plans to raise to more than 66 million in the business year to the end of March.

“We expect our current cash reserves of €2.5 billion to grow substantially by March 2013 and we plan to distribute surplus cash to shareholders from that date,” it said.