What's Going On With European Airline Ryanair's Stock Today?

Ryanair Holdings Plc RYAAY shares are trading lower after the company reported FY24 results.

Revenue grew 25% Y/Y to €13.44 billion. Scheduled revenues were up 32% Y/Y to €9.15 billion, led by traffic growth of 9% Y/Y to 183.7 million customers and a 21% Y/Y uptick in average fares to €49.80. 

Also, Ancillary revenue rose 12% Y/Y to €4.30 billion in the year. Net profit escalated 34% Y/Y to €1.92 billion and EPS rose to €1.67 from €1.15 in the year.

Operating costs increased 24% Y/Y to €11.38 billion on 32% increase in fuel costs, higher staff costs, and Boeing Company BA delivery delays. 

Related: Ryanair Faces Summer Turbulence as Boeing Delivery Delays Threaten Schedule

As of March-end, net cash stood at €1.37 billion, and it had a total fleet of 557 aircraft. The company’s fuel needs are over 70% hedged at under $80bbl for FY25. This is expected to deliver savings of about €450 million on fuel.

Dividend: Ryanair paid an interim dividend of €0.175 per share in February, with a final dividend of €0.178 per share due in September 2024. 

Buyback: Subsequent to the year end, the Board approved a €700 million share buyback, which will commence later this week.

FY25 Outlook: The company expects to grow traffic by 8% (198 million to 200 million passengers), subject to Boeing deliveries returning to contracted levels before year-end. 

Also, Ryanair stated that, “While visibility is limited, and the outcome will be heavily dependent on close-in peak S.24 pricing, we remain cautiously optimistic that peak S.24 fares will be flat to modestly ahead of last summer.”

CEO Michael O’Leary, said, “As we head into S.24, we again call on the EU Commission to deliver urgent reform of Europe’s inefficient ATC system, by protecting overflights (during national strikes) which would deliver important environmental improvements in EU air travel.” 

“Regrettably, there has been zero action from the Commission on this environmental initiative.  We again call on  Commission President Ursula von der Leyen to defend the single market for air travel by protecting 100% of overflights during national ATC strikes, as is already the case in Greece, Italy and Spain.”

Last month, Ryaniar said that it expects Boeing to deliver 40 new jets by mid-July, aligning with a previously adjusted schedule.

Price Action: RYAAY shares are down 1.95% to $123.14 at the last check Monday.

Photo via Wikimedia Commons