Ryanair Shares Plummet on Q1 Miss: Traffic Up, Fares Down & More
Portfolio Pulse from Lekha Gupta
Ryanair Holdings plc (NASDAQ:RYAAY) shares dropped 12.8% premarket after missing Q1 FY25 earnings expectations. Revenue fell 1% Y/Y, with a 15% decrease in average fares. Traffic grew 10%, but net profit dipped 46%. Operating costs rose due to Boeing delivery delays. Ryanair's outlook remains cautious with weaker-than-expected pricing for Q2.
July 22, 2024 | 10:43 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Boeing's delivery delays contributed to Ryanair's increased operating costs in Q1 FY25. This issue highlights potential operational challenges for Boeing, impacting its reputation and future orders.
Boeing's delivery delays have directly impacted Ryanair's operating costs, which could affect Boeing's reputation and future orders, leading to potential short-term negative sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
The Defiance Hotel, Airline, And Cruise ETF (CRUZ) may experience a negative impact due to Ryanair's earnings miss and share price decline, as Ryanair is a component of the ETF.
Ryanair's disappointing earnings and share price drop could negatively affect the Defiance Hotel, Airline, And Cruise ETF, given Ryanair's inclusion in the ETF.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
The iShares MSCI Ireland ETF (EIRL) may see a negative impact due to Ryanair's significant earnings miss and share price drop, as Ryanair is a major component of the ETF.
Ryanair's poor performance and share price decline could negatively affect the iShares MSCI Ireland ETF, given Ryanair's significant weight in the ETF.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
Ryanair's Q1 FY25 results showed a 1% Y/Y revenue decline and a 46% drop in net profit, missing earnings expectations. Despite a 10% increase in traffic, average fares fell 15%. Operating costs rose due to Boeing delivery delays. The company anticipates weaker Q2 pricing.
Ryanair's significant earnings miss, coupled with a decline in average fares and increased operating costs, has led to a sharp drop in its share price. The cautious outlook for Q2 further pressures the stock.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100