Revenue Performance - Scheduled revenues decreased by 2% to €5.95 billion, with traffic growing 9% to 115.3 million despite challenges[31] - Ancillary revenues increased by 10% to €2.74 billion, contributing to total revenues rising 1% to €8.69 billion[32] - Scheduled revenues for Q2 FY25 rose by 1% to €3.62 billion, with traffic growing 9% to 59.8 million[41] - Ancillary revenues in Q2 FY25 rose by 9% to €1.44 billion, leading to total revenues increasing by 3% to €5.07 billion[42] - Scheduled revenues for the half-year ended September 30, 2024, were €5.949 billion, while ancillary revenues were €2.742 billion[81] - Total revenue for the half-year ended September 30, 2024, was €8.692 billion, an increase from €8.575 billion in the same period of 2023[84] Operating Expenses - Operating expenses for fuel and oil rose by 3% to €2.90 billion, while airport and handling charges increased by 12% to €965 million[33] - Staff costs surged by 21% to €897 million due to a larger fleet and ongoing Boeing delivery delays[34] - Staff costs in Q2 FY25 increased by 17% to €449 million, reflecting a larger fleet and higher crewing ratios[45] Financial Position - Net finance income was up 57% to €50 million, supported by a strong cash balance[37] - Gross cash stood at €3.33 billion at September 30, 2024, with net cash at €0.59 billion[38] - Shareholders' equity increased by €0.14 billion to €7.76 billion, driven by a net profit of €1.79 billion[39] - The Group's non-current financial liabilities include long-term debt of €488.9M and bonds valued at €1,197.5M as of September 30, 2024[93] - The total financial liabilities as of September 30, 2024, amounted to €5,594.4M, with current liabilities including trade payables of €883.7M and accrued expenses of €1,592.6M[98] - As of September 30, 2024, the fair value of the Group's financial assets was €3,483.6M, with current financial assets including cash and cash equivalents[97] Capital Expenditures and Investments - Capital expenditures for the period amounted to €760.5 million, reflecting significant investment in aircraft[80] - The Group's net capital additions during the period were €0.69 billion, primarily for aircraft purchases[86] - The Group ordered up to 300 new Boeing 737-MAX-10 aircraft for delivery between 2027 and 2033, approved at the AGM in September 2023[77] Dividends and Share Buybacks - A final dividend of €0.178 per share was paid on September 19, 2024, in line with the Group's Dividend Policy[99] - The Company completed a €700M share buyback program in August 2024 and announced an additional €800M program, buying back approximately 47M shares at a total cost of €0.87BN, equivalent to about 4% of the issued share capital[100] - The Company declared an interim dividend of €0.223 per share payable in late February 2025[103] - Between October 1, 2024, and October 31, 2024, the Company bought back approximately 5M ordinary shares at a cost of approximately €99M under the ongoing €800M share buyback program[102] Taxation - The Group's consolidated tax expense for the half-year ended September 30, 2024, was €276 million, with an effective tax rate of approximately 13%[75] Assets and Fleet - As of September 30, 2024, the Group reported €10.94 billion in long-lived assets, with €10.70 billion related to aircraft[69] - The operating fleet consisted of 581 Boeing 737 and 27 Airbus A320 aircraft as of September 30, 2024[77] - The estimated residual value of each aircraft is 15% of market value on delivery, with a useful life of 23 years[71] Financial Risk Management - The Group's financial risk exposures are primarily related to commodity price, foreign exchange, and interest rate risks, managed through financial instruments[89] - There were no changes in the Group's risk management policies during the period[90] Other Information - No related party transactions materially affected the financial position or performance of the Group for the half-year ended September 30, 2024[88] - The maintenance and integrity of the Ryanair Holdings plc website is the responsibility of the Directors, and auditors do not accept responsibility for any changes to the financial statements since their initial presentation[124] - Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions[124]

The Zacks Airline industry has been benefiting from buoyant air travel demand, both on domestic and international fronts. Upbeat passenger volumes have always been acting as a tailwind. Higher bookings contribute to the airlines' top-line performance. While air travel demand is robust on the leisure front, business travel has also made an encouraging comeback. Further, the decline in fuel expenses represents another tailwind for the industry. Notably, oil prices declined almost 15.6% from the beginning of J ...

Ryanair's (RYAAY) top line is bolstered by an uptick in air travel demand. The company's proactive measures toward fleet modernization and sustainability are commendable. Owing to the tailwinds, RYAAY shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it's time to do so. Let's delve deeper. Factors Favoring RYAAY Stock Robust Price Performance: A look at the company's price trend reveals that its shares have risen 18.1% over the past year, ...

Shares of Ryanair Holdings (RYAAY) have not had a good time on the bourses of late, declining in doubledigits over the past 180 days. The disappointing price performance resulted in RYAAY underperforming its industryin the said time frame. Additionally, RYAAY's price performance compares unfavorably with that of other airline operators like Alaska Air Group, Inc. (ALK) and Southwest Airlines Co. (LUV) in the same time frame. Six-Month Price Comparison Image Source: Zacks Investment Research Currently tradin ...

Ryanair Holdings (RYAAY) reported solid traffic numbers for August 2024, driven by upbeat air-travel demand. The number of passengers transported on Ryanair flights was 20.5 million in August 2024, reflecting an 8% year-over-year increase. RYAAY's traffic in August was much more than the July reading of 20.2 million, June reading of 19.3 million, May reading of 18.9 million, April reading of 17.3 million and March reading of 13.6 million. The August load factor (percentage of seats filled by passengers) of ...

Financial Performance - Ryanair faces financial instability due to high operating expenses and low liquidity, which strains the company's bottom line [1] - Total operating costs grew 24% year over year during fiscal 2024, driven by a 32% increase in fuel costs and higher staff costs [7] - In the first quarter of fiscal 2025, operating costs increased by 11% year over year due to higher staff and other costs, partly due to Boeing delivery delays [7] Earnings Estimates - The Zacks Consensus Estimate for current-quarter earnings has been revised 6% downward over the past 90 days, and for the current year, the consensus mark has moved 12.5% south in the same timeframe [2] - Ryanair currently carries a Zacks Rank 5 (Strong Sell), indicating a lack of confidence from brokers [2] Stock Performance - Ryanair shares have declined 23% year to date, contrasting with its industry's 11.4% rise [4] - The company has a poor earnings surprise history, missing the Zacks Consensus Estimate in each of the trailing four quarters with an average miss of 30% [4] Industry Context - Ryanair belongs to an industry with a Zacks Industry Rank of 225 out of 251, placing it in the bottom 10% of Zacks Industries [5] - The performance of the industry group significantly impacts stock price movements, with studies showing that 50% of a stock's price movement is related to its industry performance [5] Additional Challenges - The increase in operating expenses is primarily driven by rising labor costs and fuel prices, which adversely impacts Ryanair's bottom line [6] - An anti-trust inquiry regarding price-fixing allegations for flights to and from Sicily could harm consumer confidence in the company [8]

RYAAY's profit after tax of €360 million decreased 46% year over year. Traffic grew 10% year over year despite multiple Boeing delivery delays. Ryanair Holdings plc (RYAAY) reported disappointing first-quarter fiscal 2025 (ended Jun 30, 2024) results wherein both earnings and revenues lagged the Zacks Consensus Estimate. Load factor came in at 94% in the reported quarter. Average fares were down 15%. Ryanair expects its traffic view for fiscal 2025 to grow 8%, subject to Boeing deliveries returning to contr ...

Core Insights - Ryanair's Q1 earnings report revealed a significant decline in net income, dropping to €360 million from €663 million year-over-year, leading to a market reaction that saw its stock lose over 15% of its value on the release day [2][5][36] - The company experienced a 10% increase in customer volume but a 1% decrease in load factor, with average fare rates decreasing by 15%, contributing to a rounded revenue decrease of 1% [8][9][10] - Operating expenses rose by 11% to €3.26 billion, with notable increases in fuel costs (up 6% to €1.42 billion) and staff costs (up 25% to €450 million) [14][16][18] Financial Performance - Total operating revenues for Q1 were €3.63 billion, slightly down from €3.65 billion the previous year [9] - Operating profit fell by 49% to €365.7 million, while profit before tax decreased by 46% to €400.8 million [4][9] - Other income, including net finance income, increased by 55% to €28.1 million, partially offsetting the decline in operating profit [4] Operational Factors - Ryanair's operational metrics showed a mixed performance, with a 10% increase in customers but a decrease in load factor, indicating fewer seats sold compared to the previous year [8][10] - The company acknowledged that summer fare rates are likely to settle lower than the previous year due to competitive pressures and structural concerns from delayed aircraft deliveries from Boeing [2][36] Cost Structure - Significant increases in operating costs were noted, particularly in staff costs and depreciation, which rose by 25% and 14% respectively [16][18] - Marketing expenses also increased by 9% to €220 million, reflecting the competitive nature of the low-cost airline market [19] Valuation and Market Outlook - Ryanair's forward P/E ratio stands at 13.86, which is below the sector median of 22.17, indicating potential undervaluation [28] - The company's price-to-sales ratio of 0.95 is favorable compared to its peers, suggesting a solid growth outlook despite recent earnings challenges [29] Technical Analysis - The relative strength index (RSI) for Ryanair is at 22.31, indicating that the stock is theoretically oversold, which may present a buying opportunity [32] - The stock's performance has been negatively impacted by the recent earnings report, but there is potential for recovery as ancillary revenue growth complements its low-cost fare structure [36]

Financial Performance - Q1 2025 started slowly for Ryanair, with profits declining partly due to the absence of the Easter effect, which impacted previous results [2] - Ryanair's sales declined by 1% compared to last year, with ancillary top-line sales reaching €1.30 billion (approximately €23.40 per passenger) [2] - The company's net cash increased to €1.74 billion at June's end, a €400 million increase compared to March's end, driven by €500 million in CAPEX and share buybacks [2] - Ryanair reported core EBIT of €365 million, lower than the forecasted €540 million, with top-line sales of €3.6 billion compared to the projected €3.8 billion [6] - Adjusted net income reached €1.45 billion with an EPS of €1.55, despite a 49% decline in Q1 EBIT [6] Operational Updates - Ryanair received 10 B737-8200 planes in Q1, reducing fuel consumption by 16% and offering 4% more seats [2] - The company opened five new bases with over 200 new routes for the summer of 2024, expanding its EU footprint [2] - Ryanair expects traffic growth of 8% to 200 million passengers for the full year, assuming no further delays in Boeing aircraft deliveries [4] - The company is working with Boeing to improve quality and deliveries, with 156 B737 Gamechangers in the fleet as of June 30 [12] - Ryanair extended its fuel hedges to 75% for FY25, locking in potential savings of over €450 million [6] Market and Industry Trends - EU short-haul capacity remains constrained due to significant maintenance from P&W engine repairs and airline delivery backlogs [2] - Ryanair's Gamechanger Strategy is expected to offer a decade of low-fare profitable growth, despite capacity constraints [2] - Average fares are down by 15%, signaling bigger-than-expected weakness for European airlines this summer [4] - The company faces competition from Wizz and EasyJet, along with potential delays in B737 MAX aircraft deliveries [8] - Consumer demand is softening, with lower fares and increased fare sales by low-cost carriers [10] Strategic Initiatives - Ryanair is progressing with its share buyback program, with room for an additional €350 million repurchase [2] - The company has completed over 50% of its €700 million share buyback program [12] - Ryanair is focusing on the delivery of the next 50 B-8200s before S.25, despite Boeing delays [13] - The company's balance sheet remains one of the strongest in the industry, supported by dividend payments and share repurchases [2] Valuation and Outlook - Ryanair's stock price is down by approximately 17% following the Q1 2025 update [10] - The company's valuation aligns with its historical average on a FWD P/E, with a target of €15.5 per share [14] - Despite a consumer slowdown, Ryanair's medium-term outlook remains optimistic, supported by its unique cost basis and solid balance sheet [14] - The company's load factor was 94%, one basis point lower than last year's results [6] - Ryanair's fuel savings partially offset the earnings decline projection from lower fares expected in Q2 [6]

Ryanair Holdings plc (NASDAQ:RYAAY) Q1 2025 Results Conference Call July 22, 2024 5:00 AM ET Company Participants Stephen Furlong - Davy Jarrod Castle - UBS Alex Irving - Bernstein Harry Gowers - JPMorgan Dudley Shanley - Goodbody Jaime Rowbotham - Deutsche Bank James Hollins - BNP Paribas Sathish Sivakumar - Citi Savanthi Syth - Raymond James Duane Pfennigwerth - Evercore ISI Muneeba Kayani - Bank of America Gerald Khoo - Liberum Alex Paterson - Peel Hunt Johannes Braun - Stifel Michael OÂ'Leary We reporte ...