Ryanair CEO Michael O'Leary discusses the high costs of air travel in the US, the availability of jet fuel in Europe, and the potential for casualties among European airlines from higher oil prices.
The airline group warned of weaker-than-expected pricing trends into the summer season and fell short of providing profit guidance due to uncertainty about demand and fuel supply.
European stocks are expected to start the new trading week in negative territory as investors react to the latest developments in the U.S.-Iran war.
RYAAY's passengers rise 5% year over year to 19.3M in April 2026, with load factor flat year over year at 93%.
Ryanair's boss warned that European airlines could see "real failures" if jet fuel prices remain high, having "mushroomed" since the Iran war began.
Germany's Lufthansa lost its appeal on Thursday against a court ruling that struck down EU approval of state aid it received during the COVID pandemic, confirming a victory for rival Ryanair.
Cortland Associates Inc. MO lowered its position in Ryanair Holdings PLC (NASDAQ: RYAAY) by 1.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 692,972 shares of the transportation company's stock after selling 12,966 shares during the quarter.
Ryanair Holdings plc remains a Buy, with a 32% upside and $75.77 price target, despite recent share price underperformance and rising fuel costs. RYAAY's fuel costs comprise 42-45% of operating expenses, making it highly sensitive to fuel price fluctuations, but robust hedging shields much of this risk. Fuel hedge gains are fading, prompting Ryanair to consider fare increases and selective route cuts to preserve margins amid elevated jet fuel prices.
RYAAY's passengers rise 5% year over year to 15.8M in March 2026, with load factor flat year over year at 93%.
RYAAY faces rising costs, weakening liquidity and estimate cuts, with shares lagging its industry, while mounting pressures cloud the outlook and investor appeal.
The CEO of Ryanair said fuel supplies could be at risk if the Iran war continues into May. Jet fuel prices have doubled since the war started, rising twice as much as oil.
Stocks listed in Europe fell on Thursday, as investors reacted to U.S. President Donald Trump's address on the Iran war.