Ryanair Stock Gains 23.2% in 3 Months: What Should Investors Do Now?

Core Viewpoint - Ryanair Holdings (RYAAY) has shown strong stock performance, outperforming the Zacks Airline industry and other competitors, with a notable increase in passenger traffic and revenue due to rising travel demand [1][4]. Group 1: Positive Factors - Ryanair's passenger traffic grew by 9% to 183.7 million in fiscal 2024, and it is projected to reach 207 million passengers in fiscal 2026, up from a previous estimate of 206 million, driven by strong demand and early Boeing deliveries [5][6]. - The company has a solid financial position, ending the second quarter of fiscal 2026 with cash and cash equivalents of $3.58 billion against a debt level of $1.40 billion, indicating strong liquidity [9]. - Ryanair is actively engaged in share buybacks, having repurchased and canceled 7% of its issued share capital during fiscal 2025, with ongoing buyback programs totaling €750 million approved in May 2025 [12]. Group 2: Fleet Modernization - Ryanair is modernizing its fleet to meet increasing travel demand, having taken delivery of 30 new Boeing 737-8200 aircraft in fiscal 2025, which enhance fuel efficiency [8]. - The company expects to receive the remaining six aircraft from its 210 orderbook before the summer of fiscal 2026, and it has placed orders for 300 new Boeing 737-MAX-10 aircraft for delivery between 2027 and 2033 [8][13]. Group 3: Challenges - Production delays at Boeing are impacting Ryanair's fleet expansion plans, with ongoing discussions to expedite aircraft deliveries [13]. - Rising operating expenses due to increased staff costs and higher air traffic control fees have pressured Ryanair's margins, with total operating expenses growing by 4% year over year [14][15]. - Earnings estimates have been revised downward, reflecting the challenges faced by the company, with current quarter estimates at $0.15 and next quarter at -$0.94 [16].