Ryanair Has Scope for Further Shareholder Returns -- Market Talk

Dow Jones
2024/11/04

0920 GMT - Ryanair has scope for more shareholder returns with free cashflow yields stepping up to over 10% by fiscal 2026 as capital expenditures decrease, RBC Capital Markets analyst Ruairi Cullinane says in a note. The budget airline lowers 3Q unit costs slightly on fuel hedge savings, strong interest income and a modest aircraft-delay compensation. Passenger numbers are expected to rise around 8% to with a 198 million to 200 million range for fiscal 2025, but it lowers expectations for fiscal 2026 to 210 million from a previous 215 million passengers given Boeing's aircraft-delivery delays. "We see longer term attractions to Ryanair's low-cost, and relatively high-margin--and so high return on capital employed/return on invested capital--business model," Cullinane says.(anthony.orunagoriainoff@dowjones.com)

 

(END) Dow Jones Newswires

November 04, 2024 04:20 ET (09:20 GMT)

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