With Ryanair shares moving south, we assess the current positioning of the stock to determine if it's a good investment at this juncture.
Deutsche Bank has downgraded easyJet PLC (LSE:EZJ) to 'hold' and upgraded Ryanair Holdings PLC (LSE:RYA) to 'buy', flagging rising macro uncertainty and weaker GDP expectations in Europe and the US. The shift comes as part of a broader reassessment of European transport stocks, with analyst Andy Chu warning that earnings across the sector remain highly exposed to the economic cycle.
Ryanair is to launch an annual subscription service that gives members reserved seating, insurance and access to monthly seat sales for 79 euros ($85) per year, it said on Monday.
Ryanair and easyJet , which do not operate at London's Heathrow Airport, are adding extra capacity in and out of other British airports to offer alternatives for passengers affected by Heathrow's sudden closure.
JP Morgan remains upbeat on Ryanair Holdings PLC (LSE:RYA), highlighting its confidence in strong summer pricing and controlled cost inflation. After hosting Ryanair's CFO Neil Sorahan at an investor conference in New York, JPM noted that the airline expects solid fare growth for the peak travel season, even as some airlines express caution over softening demand in certain markets.
RYAAY's February 2025 load factor of 92% remained flat on a year-over-year basis.
Ryanair Holdings PLC has said fares will likely grow over the coming year, following news from On the Beach Group PLC that consumers were still forking out for holidays. Fares were seen climbing 4% to 6% ahead, chief executive Michael O'Leary said on Tuesday, after the airline faced a 10% drop last year, in part on disputes with travel agents.
Ryanair epitomizes the ‘budget airline' business model, boasting some of the highest efficiency and operational metrics amongst its peers, like its 93.5% load factor (FY24). Two years clear of the initial impact of COVID-19, Ryanair is rapidly growing its already dominant reach, with a 3-year revenue CAGR in excess of 54%. A considerable investment in fleet expansion, seeking to increase their aircraft from 609 to 900 by 2034, underpins their growth strategy.
With RYAAY shares moving south, we assess the current positioning of the stock to determine if it's a good investment at this juncture.
RYAAY's January 2025 load factor improved to 91% from 89% in the year-ago period.
UK Chancellor Rachel Reeves "knows the third runway in Heathrow won't be delivered until about 2040, possibly even 2050, if at all," says Ryanair CEO Michael O'Leary. "This is a dead cat she's throwing up on the table to mask the fact that she has no growth plan," he adds.
Ryanair is confident that Boeing will ramp up its production of 737 MAX jets to 38 per month this summer and that it will be allowed by the administration of U.S. President Donald Trump to then increase that to 42, its CEO said on Wednesday.