Ryanair Stock Plunges 25.4% in 6 Months: Should You Buy the Dip?

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].