Ryanair Holdings

FY guidance held as ancillaries grow

  • Sectors : Airlines
  • Companies : Ryanair Holdings

Ratings and price correct at time of issue.

  • Ryanair Holdings

    Closing Price: 1002c

  • RATING 07/12/09

  • PREVIOUS RATING 02/11/09

    NEUTRAL

DAVY VIEW

Ryanair held FY guidance (€750-950m) after a tough Q1 as ancillaries’ performance is the standout. As we look towards the challenging winter period, the tight capacity market could get even more constrained with the MAX delays. Despite the delays and slower growth, cost performance was maintained and a good fuel hedging position building into next year points to renewed earnings momentum. With unit revenue guidance trimmed to +2% to +3% (previously +2% to +4%), we are likely to modestly trim our net income numbers by c.5% to c.€840m (consensus: €832m). With the business model fully intact, we view the stock as excellent value at these levels.

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Jul 29 2019, 06:30 IST/BST

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