DAVY VIEW

Like Ryanair, we expect a strong summer (now 70 new B737-8200 aircraft). The company sees peak summer yields single-digit ahead of summer 2019. Ryanair highlights limited H1 visibility (and almost zero H2 visibility) but hopes “to return to reasonable profitability” in FY23. However, no financial guidance was given. We see a sharp recovery but fuel prices will partly offset this and consensus will likely come back modestly — we assume in the single-digits. Still, Ryanair is best placed from a market share, growth, balance sheet, cost and hedging position to offset headwinds and thrive in any, even a recessionary, environment. We have a €19 price target.