Ryanair Holdings Plc - ADR

Financial Performance: Ryanair reported a Q3 profit after tax of EUR 149 million, attributing traffic growth of 9% to 45 million passengers, despite a decline in cumulative profits for the nine months, which fell 12% YOY to EUR 1.94 billion. Average fares and ancillary revenues rose marginally by 1% each, showing resilience amidst challenges.

Revised Traffic Forecasts: The FY 2026 traffic target was lowered from 215 million to 206 million due to Boeing aircraft delivery delays. Ryanair expects only 3% growth over the next 12 months, reflecting increased difficulties in scaling operations despite existing demand opportunities across Europe.

Challenges with Boeing Deliveries: Boeing's ongoing delivery delays are significantly impacting Ryanair's growth strategy. The company is now due to receive only nine aircraft this summer, down from initial expectations of 25. This scenario has resulted in a concerning lack of capacity relative to industry growth opportunities.