Ryanair’s RYAAY top line is bolstered by an uptick in air travel demand. The company’s proactive measures toward fleet modernization and sustainability are commendable. Owing to the tailwinds, RYAAY shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Factors Favoring RYAAY Stock

Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 18.1% over the past year, surpassing the sector’s 10.5% growth.

Image Source: Zacks Investment Research

Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 6.8% over the past 60 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 6.1% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Solid Zacks Rank: RYAAY currently carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which Ryanair belongs currently has a Zacks Industry Rank of 76 (out of 252). Such a favorable rank places it in the top 30% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Growth Factors: Upbeat air travel demand bodes well for Ryanair's prospects, boosting the company’s top line. In August 2024, RYAAY reported robust traffic numbers, transporting 20.5 million passengers. This figure represents an 8% year-over-year increase, with a load factor (percentage of seats filled by passengers) of 96%.For fiscal 2025, management expects RYAAY’s traffic view to rise 8% year over year.

The company’s proactive measures to enhance sustainability and modernize its fleet are commendable. In the first quarter of fiscal 2025, RYAAY received delivery of 10 B737-8200 “Gamechangers,” which offer 4% more seats and reduce fuel and CO2 emissions by 16%. RYAAY continues retrofitting winglets to its B737NG fleet, aiming for a total of 409 by 2026, which will cut fuel burn by 1.5% and noise by 6%.

RYAAY’s commitment to rewarding its shareholders through dividends is encouraging. In the first quarter of fiscal 2025, the company initiated a share repurchase program of $700 million and has achieved 50% of the program to date. A final dividend of $0.189 per share is set to be paid in September 2024.