Ryanair: Suffering Boeing Delays And Lower Fares

(6min)

Summary

  • Despite a 15% stock decline, I maintain a buy rating on Ryanair due to its leading position in Europe and potential future margin expansion.
  • Ryanair's revenues grew modestly by 1%, but profits fell 18% due to increased operating expenses and discounted fares to maintain high load factors.
  • The company's competitive edge hinges on the timely delivery of Boeing 737 MAX aircraft, which is crucial for fleet efficiency and future growth.
  • With FY26 earnings, Ryanair has a 26% upside potential, making it a compelling buy despite current challenges and increased risks.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »

Ryanair aeroplane Boeing 737MAX taking off in beautiful evening light

Photofex-AT/iStock Editorial via Getty Images

I covered Ryanair (NASDAQ:RYAAY) (OTCPK:RYAOF) in May 2024 with a buy rating, and despite the fact that I do believe low-cost carriers in Europe are among the most attractive airline investment opportunities, the

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This article was written by

20.01K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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