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1. Company Snapshot

1.a. Company Description

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, Italy, Spain, Germany, and other European countries.It is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services; in-flight sale of beverages, food, duty-free, and merchandise; and marketing of car hire and accommodation services, and travel insurance through its website and mobile app.In addition, the company offers aircraft and passenger handling, ticketing, and maintenance and repair services; and markets car parking, fast-track, airport transfers, attractions, and activities on its website and mobile app, as well as sells gift vouchers.


As of June 30, 2022, it had a principal fleet of approximately 483 Boeing 737 aircrafts and 29 Airbus A320 aircrafts; and offered approximately 3,000 short-haul flights per day serving approximately 225 airports.Ryanair Holdings plc was founded in 1985 and is headquartered in Swords, Ireland.

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1.b. Last Insights on RYA

Ryanair's recent performance was driven by strong demand, fleet upgrades, and easing tariff uncertainties. The airline reported a 42% rise in half-year profits, driven by a 13% increase in fares and higher revenues from ancillary services. Earlier-than-expected Boeing deliveries boosted passenger traffic forecasts, with 23 new MAX 8 aircraft received. Bernstein SocGen Group reiterated an 'Outperform' rating, citing the company's strength. Quicker deliveries enabled Ryanair to raise its full-year passenger outlook to 207 million.

1.c. Company Highlights

2. Ryanair's Strong H1 FY '26 Earnings: A Closer Look

Ryanair Holdings plc reported a robust financial performance in H1 FY '26, with Q2 profits rising 20% to EUR 1.72 billion. The actual EPS came out at '0.766', below estimates at '1.66'. Revenue growth was driven by a 7% increase in fares in Q2, recovering from last year's 7% decline. Unit costs were well-controlled, up only 1% in Q2, thanks to lower hedge costs. The company's ex-fuel unit cost performance was up 2%, partly due to lower EU261 disruption costs and efficient marketing spend.

Publication Date: Nov -04

📋 Highlights

Operational Highlights

Ryanair's traffic grew 2% in Q2, despite being impacted by delayed aircraft deliveries, with 23 of 29 aircraft delivered so far. The company expects traffic growth to 215-216 million passengers in FY '27 and 225 million by FY '28. The airline is poised for strong growth, with a target to grow from 207 million passengers to over 300 million by 2034.

Fuel Hedging and Cost Management

Ryanair has taken advantage of recent fuel weakness, hedging 80% of FY '27 fuel at $67 a barrel, a 10% saving on its fuel bill, or about EUR 600 million. This will help fund growth and offset increased emissions ETS taxes. The company expects unit cost per passenger to rise 1-3% in the second half of the year, driven by air traffic control charges, marketing spend, and maintenance costs.

Balance Sheet Strength and Growth Prospects

The balance sheet continues to strengthen, having paid back an EUR 850 million bond in September, with the final EUR 1.2 billion bond to be paid in May, leaving the company debt-free with a fleet of 640 aircraft. Ryanair's growth strategy focuses on long-term investments in markets like the UK, Central and Eastern Europe, and Poland. The airline has extra aircraft in Birmingham, Manchester, and other locations, aiming to lower costs and incentivize additional traffic.

Valuation Metrics

With a P/E Ratio of 13.85 and an EV/EBITDA of 7.51, Ryanair's valuation appears reasonable. The company's ROE (%) stands at 27.29, indicating strong profitability. The Net Debt / EBITDA ratio is -0.35, reflecting the company's net cash position. These metrics suggest that Ryanair's strong financial performance and growth prospects are not entirely reflected in its current valuation.

3. NewsRoom

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Should Investors Buy RYAAY Post a Bullish Fiscal 2026 Traffic Outlook?

Dec -04

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Ryanair Issues Impressive Traffic Numbers for November 2025

Dec -03

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Ryanair Boosts Pescara Airport With Record Routes and 1.3M Passengers

Dec -02

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Businessman admits scamming airlines with fake parts

Dec -01

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Ryanair scraps VIP scheme after customers take too many cheap flights

Nov -29

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Ryanair (ISE:RYA): Assessing Current Valuation as Shares Climb and Sector Optimism Grows

Nov -19

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European Equities Slump; German Jobs Slip, UK Sentiment Weakens

Nov -18

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Update: Market Chatter: Ryanair Loses 2 Landing Slots Over Late Arrivals in Netherlands

Nov -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

Ryanair DAC

Expected Growth: 7.0%

As the largest and most profitable segment, Ryanair DAC is expected to drive growth through increased passenger traffic, higher ancillary revenue, and efficient cost management. The segment's growth will be fueled by Ryanair's expanding fleet, new route launches, and improved operational efficiency.

Other Airlines

Expected Growth: 5.0%

The growth of Other Airlines will be driven by the expansion of its fleet, increased passenger traffic, and strategic partnerships. However, growth will be slower compared to Ryanair DAC due to competitive pressures and market saturation in certain regions.

Elimination

Expected Growth: 0.0%

As an elimination segment, growth is not applicable, as it merely represents accounting adjustments to eliminate intra-group transactions. The segment's purpose is to ensure accurate financial reporting, and its value will fluctuate based on inter-segment transactions.

7. Detailed Products

Scheduled Flights

Ryanair offers low-cost scheduled flights to over 200 destinations in 37 countries across Europe and North Africa.

Ancillary Services

Ryanair offers additional services such as checked baggage, priority boarding, and seat selection to enhance the travel experience.

Travel Insurance

Ryanair offers travel insurance policies to protect against unforeseen events such as trip cancellations, medical emergencies, and travel disruptions.

Car Hire

Ryanair partners with car rental companies to offer discounted car hire rates at destinations across Europe.

Hotel Booking

Ryanair offers discounted hotel rates at destinations across Europe through its partnership with Booking.com.

Package Holidays

Ryanair offers package holidays that combine flights, hotels, and car rentals for a discounted rate.

8. Ryanair Holdings plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Ryanair's low-cost model and efficient operations make it difficult for substitutes to emerge. However, there is a growing trend towards train travel and other modes of transport that could potentially substitute air travel.

Bargaining Power Of Customers

Ryanair's customers have some bargaining power due to the availability of alternative airlines and travel options. However, the airline's low fares and efficient operations make it an attractive option for many customers.

Bargaining Power Of Suppliers

Ryanair has a strong bargaining position with its suppliers due to its large scale of operations and ability to negotiate favorable contracts. This allows the airline to keep costs low and maintain its competitive advantage.

Threat Of New Entrants

The airline industry has significant barriers to entry, including high capital costs, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to challenge Ryanair's market position.

Intensity Of Rivalry

The European airline industry is highly competitive, with many established players competing for market share. Ryanair faces intense competition from other low-cost carriers, as well as from traditional airlines that are adapting to the low-cost model.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.18%
Debt Cost 3.95%
Equity Weight 57.82%
Equity Cost 11.56%
WACC 8.35%
Leverage 72.94%

11. Quality Control: Ryanair Holdings plc passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aena

A-Score: 7.5/10

Value: 6.7

Growth: 7.1

Quality: 8.2

Yield: 6.9

Momentum: 6.5

Volatility: 9.3

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Copa

A-Score: 6.8/10

Value: 6.2

Growth: 4.5

Quality: 5.8

Yield: 7.0

Momentum: 8.0

Volatility: 9.3

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Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

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Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

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Ryanair

A-Score: 6.0/10

Value: 5.3

Growth: 7.8

Quality: 6.6

Yield: 1.2

Momentum: 8.5

Volatility: 6.3

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.95$

Current Price

27.95$

Potential

-0.00%

Expected Cash-Flows