Ryanair share price will be in focus on Monday as the company published financial results for the year ending in March. Its stock ended the week at $50 on Friday, down from last week’s high of $51.60. It remains about 30% above its lowest level this year.
Ryanair earnings and share buyback
Ryanair, the top European airline company, published its financial results on Monday which showed that its business did well in the last financial year even as challenges remained.
The numbers showed that it became the first European airline to carry 200 million passengers in a year. Its passenger count rose by 9% during the year as it continued its momentum.
The loaf factor remained at 94%, while the revenue rose by 4% to €13.95 billion. This revenue growth was relatively muted because of lower airfares in 2024 as competition rose. Airfares dropped by 7% in 2024
Revenue growth was also slow because of a short full easter in the last quarter and more offers after it ended, partnerships with many Online Travel Agency (OTA) companies, which it accused of overcharging customers, and that they limited its communication with customers.
Ryanair did not offer a forward guidance for the year because of the tariff and trade war risks in its business. However, it has gradually reduced its targets for the number of passengers it will carry in 2026 to 215 million, up from 206 million this year.
Boeing problems persist
It has blamed this issue on Boeing, which the FAA has asked to limit the number of 737 jets it makes. Most notably, the company has warned that it may have to scrap a $33 billion order with Boeing if the European Union adds tariffs on Boeing jets.
Switching to a separate supplier like Airbus would be a costly affair since Ryanair deals only with Boeing planes. On the positive side, the US has already reached a truce with China and the UK and is actively deliberating with the European Union.
Boeing is also a top lobbyist in Washington, and its officials will likely express the dangers of a prolonged trade war. This means that Washington will want to avoid the repercussions since Ryanair is Boeing’s biggest customer.
The other key part of Ryanair’s earnings was its share repurchase program. It will repurchase shares worth over €750 million in the next 12 months. Share buybacks helps a company boost shareholder value by raising the earnings per share (EPS).
Analysts believe that Ryanair will weather the current storm better than its rivals because of its solid balance sheet and dominant market share in Europe. It ended the year with almost €4 billion in cash, which it will use to pay its €1.2 billion maturities in the next 12 months.
Ryanair share price analysis
The daily chart shows that the Ryanair stock price bottomed at $38.54 in April and then bounced back to over $50, a notable level since it was the highest point in March this year. This price was where it formed a double-top pattern, a popular bearish pattern.
Ryanair stock remains above the 50-day and 100-day moving averages. Therefore, the stock will likely be volatile in the UK and in the US today. In the long term, however, the Ryanair share price will likely resume the uptrend, and possibly hit the key resistance point at $59.12, the highest level in April last year.
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