Ryanair’s first quarter figures impress, website traffic indicated it could take off

Ryanair Holdings (NASDAQ: RYAAY) delivered impressive financial and operational numbers in the first quarter. However, this should come as no surprise to TipRanks users who leverage the website’s traffic filter. TipRanks website traffic analyzer highlighted that Ryanair was among the top 10 airlines based on year-on-year growth in website visits in June 2022.

According to the tool, web visits to ryanair.com increased by 49.11% year-over-year in June 2022. Additionally, traffic more than doubled in the first six months of this year. The spike in website visits indicated that Ryanair could benefit from a rebound in demand, and first quarter results revealed the same.

Ryanair’s traffic in the first quarter increased from 8.1 million to 45.5 million year-on-year. Moreover, it was about 9% higher than pre-COVID levels. Thanks to the strong recovery in demand, its turnover jumped by more than 600%. While the company achieved profitable growth, its first quarter PAT (profit after tax) remained below that of the pre-COVID period.

Management said rising costs and lower tariffs due to Russia’s invasion of Ukraine impacted its results.

Horizon Post Q1 Content

Management is optimistic that the high rate of vaccinations will support the airline and tourism industry. Ryanair aims to boost FY23 traffic to 165 million, 11% above pre-COVID levels. Given pent-up demand and strong bookings, Ryanair’s forecast looks achievable.

It’s worth mentioning that second quarter average rates are ahead of pre-COVID levels, which should support its profitability. However, fuel price volatility, geopolitical and supply chain risks and the resurgence of the virus could continue to play spoilsports.

Conclusion

Ryanair closed 4.6% higher on Monday after the first quarter figures. Meanwhile, strong demand and higher bookings bode well for growth. It is also focused on reducing its debt and expects to reach zero net debt within the next two years.

Given the improving operating environment, RYAAY is receiving a positive signal from hedge funds and retail investors. Based on three buy recommendations, it sports a consensus Strong Buy rating on TipRanks. Additionally, Ryanair’s average price target of $121 implies an upside potential of 62.94%. Overall, RYAAY stock has a smart outperformance score of 9 out of 10.

Disclosure

Edwin S. Wolfe