Ryanair Holdings plc (RYAAY) reported disappointing second-quarter fiscal 2025 (ended Sept. 30, 2024) results wherein both earnings and revenues lagged the Zacks Consensus Estimate.  Quarterly earnings per share (EPS) of $2.82 lagged the Zacks Consensus Estimate of $2.92 and declined year over year.Find the latest EPS estimates and surprises on ZacksEarnings Calendar.Revenues of $5.56 billion missed the Zacks Consensus Estimate of $5.59 billion. However, the top line improved year over year.RYAAY’s profit a ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the ...

Financial Data and Key Metrics - H1 after-tax profits were EUR1.8 billion, down 18% YoY from EUR2.18 billion [4] - H1 revenues increased by 10% to EUR2.74 billion, driven by 9% traffic growth [7] - Average fares fell by 10% in H1, with Q1 down 15% and Q2 down 7% [4] - Gross cash at the end of H1 was over EUR3.3 billion, with net cash at EUR600 million [8] - The company completed a EUR700 million share buyback in August and is 30% through a EUR800 million follow-on buyback [6] Business Line Data and Key Metrics - The fleet consisted of 608 aircraft at the end of H1, including 170 B737 Gamechangers, which increased to 172 by October [5] - Five new bases and 200 new routes were opened during the summer [5] - Approved OTA partnerships now cover over 90% of all OTAs, protecting consumers from overcharging [5] Market Data and Key Metrics - Traffic grew by 9% to a record 115 million passengers, though it would have been higher without Boeing delays [4] - The company expects to carry between 198 million and 200 million passengers for the full year, up 8% YoY [18] - Forward bookings for Q3 are strong, with 70% of bookings already in the system [18] Company Strategy and Industry Competition - The company is focusing on cost discipline, with unit costs expected to be broadly flat for the full year [19] - Ryanair's cost advantage over competitors is widening due to owning its entire Boeing 737 fleet, avoiding expensive leases [8] - The company is working closely with Boeing to manage delivery delays and expects to receive 15 of 29 delayed aircraft by June 2025 [11][12] Management Commentary on Operating Environment and Future Outlook - Management noted that the industry is facing capacity constraints due to Boeing delays and Pratt & Whitney repairs, which could lead to higher pricing in the medium term [15] - The company is optimistic about pricing for summer 2025 and 2026, given weak prior-year comparables and capacity constraints [16] - Management highlighted the impact of consumer spending tightness in Europe and the OTA dispute on pricing softness [14] Other Important Information - The Board is reviewing ownership and control restrictions, with a decision expected in the first half of 2025 [17] - The company has hedged 85% of its fuel for H2 FY25 at $79 per barrel and 75% for FY26 at $77 per barrel [6] - Ryanair has returned almost EUR9 billion to shareholders since 2008, including dividends and share buybacks [9] Q&A Session Summary Question: Impact of ATC disruptions and OTA disputes - The OTA dispute impacted load factors by 2-3 points in Q3 and Q4 of the previous year, with a more significant impact in summer 2024 [28] - Management estimates that up to half of the 10% fare decline in H1 was due to the OTA dispute, with the other half attributed to consumer spending pressure [31] - Forward bookings for summer 2025 are strong, with a 2% increase compared to the same period last year [36] Question: Fuel hedging and cost management - The company has hedged 75% of its fuel for FY26 at $77 per barrel, taking advantage of recent price weakness [6] - Unit costs are expected to be broadly flat for the full year, with fuel hedge savings offsetting ex-fuel cost inflation [19] - Overstaffing due to Boeing delays resulted in higher crew costs, but the company expects to manage this better in FY26 [48] Question: Aircraft delivery delays and growth outlook - Boeing delays have forced the company to revise its traffic growth targets, with FY25 now expected at 200 million passengers (down from 205 million) and FY26 at 210 million (down from 215 million) [12] - The company is working closely with Boeing and expects to receive 15 of 29 delayed aircraft by June 2025 [11] - Management remains optimistic about the MAX 10 certification, which is expected in the second half of 2025 [79] Question: Ancillary revenue performance - Ancillary revenue grew by 10% in H1, slightly ahead of the 9% traffic growth [90] - Key drivers of ancillary revenue include reserved seating, onboard sales, and the new order-to-seat initiative [91] - The company is working to optimize pricing and improve priority boarding performance [92] Question: Share buybacks and capital allocation - The company completed a EUR700 million share buyback in August and is 30% through a EUR800 million follow-on buyback [6] - Future buybacks will depend on cash generation, with priority given to bond repayments in 2025 and 2026 [74] - The Board remains committed to returning surplus cash to shareholders through dividends and buybacks [164] Question: Ownership and control restrictions - The Board is reviewing potential changes to ownership and control restrictions, with a decision expected in the first half of 2025 [17] - The company has consulted with 60% of its shareholders and expects to complete the process in the next 3-4 months [103] - Potential outcomes include removing ownership restrictions, removing voting restrictions, or maintaining the status quo [107]

Shares of Ryanair (RYAAY) have gained 0.6% over the past four weeks to close the last trading session at $45.43, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $58.08 indicates a potential upside of 27.9%.The mean estimate comprises four short-term price targets with a standard deviation of $3.31. While the lowest estimate of $54 indicates an 18.9% increase from the current pri ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Valu ...

Michael O'Leary became CEO of Ryanair in 1994 and has held the role ever since. NurPhoto via Getty Images Ryanair's CEO Michael O'Leary said that in his 30 years in the airline industry he had never seen capacity constraints like those he's facing now. The longtime chief of Europe's largest airline laid out the difficulties that Boeing's delayed deliveries are creating for his carrier in an interview with Reuters Wednesday. "We were supposed to get 20 deliveries before the end of December. They'll probably ...

Company Overview - Ryanair is a budget-friendly airline based in Ireland [1] - The company's share price has recently dropped from $58.50 to $44, marking a decline of 24.70% [1] Financial Performance - The recent decline in share price is primarily attributed to the company's poor financial performance in 1Q25 [1]

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This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Ireland's data protection watchdog said Ryanair customers across the EU complained about the company's processing of personal data. Ireland's data watchdog said Friday it will probe whether budget airline Ryanair's use of facial recognition to check the identity of customers booking through third-party websites violates EU privac ...

Core Viewpoint - Ryanair Holdings (RYAAY) has experienced a significant decline in stock price, underperforming compared to its industry and other airline operators over the past 180 days [1][3]. Financial Performance - Currently trading at $43.01, RYAAY has rebounded 23.34% from its 52-week low of $34.87 but remains 28.66% below its 52-week high of $60.29 [3]. - Total operating costs increased by 24% year over year during fiscal 2024, driven by a 32% rise in fuel costs and higher staff expenses [4]. - In the first quarter of fiscal 2025, operating costs rose 11% year over year, influenced by increased staff costs and Boeing delivery delays [5]. Market Demand - Passenger volumes have shown robust growth, with RYAAY's traffic rising 9% year over year during fiscal 2024 and 10% year over year in the first quarter of fiscal 2025 [7]. - In September 2024, RYAAY transported 19.1 million passengers, marking a 10% increase year over year, with a load factor of 94% [8]. Future Outlook - RYAAY anticipates an 8% increase in traffic for fiscal 2025, contingent on Boeing deliveries returning to contracted levels [9]. - The company has a strong balance sheet, with cash and equivalents increasing to $5.15 billion in the first quarter of fiscal 2025 from $3.49 billion a year earlier, and long-term debt decreasing to $2.7 billion [10][11]. Shareholder Returns - RYAAY has completed over 50% of its €700 million share buyback program initiated in May 2024, returning over €7.8 billion to shareholders since 2008 [11]. - A final dividend payment of €0.178 per share was made in September 2024 [11].