Ryanair, Europe's leading budget airline, faces financial headwinds despite a surge in passenger traffic. The carrier reported a modest revenue increase to €8.69 billion in the first half of fiscal year 2024/25, while net profit dipped to €1.79 billion. Passenger numbers climbed 9% to 115 million, yet lower ticket prices and escalating operational costs led to a 17% decline in operating profit to €2.015 billion. In response to market uncertainties, Ryanair has slightly reduced its passenger forecast for the upcoming fiscal year from 215 million to 210 million, opting to withhold a concrete full-year outlook.
Stock Performance and Financial Metrics
Despite these challenges, Ryanair's stock demonstrates resilience. As of November 4, 2024, shares traded at €17.64, boasting an impressive year-to-date gain of 18.18%. The company's financial indicators remain attractive, with a price-to-earnings ratio of 12.62 for 2024 and a price-to-sales ratio of 1.80. A robust cash flow per share of €2.90 further underscores the airline's operational strength. In a show of confidence, Ryanair plans to distribute an interim dividend of €0.223 per share in February 2025, signaling optimism about its long-term prospects despite near-term pressures.
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