Ryanair (RYAAY, $96.04) Lowers Profit Expectations -- Are Rivals Milking The Opportunity?
Ryanair is cutting its profit projections, as the European low-cost airline struggles with flight cancellations, fuel costs and staff strikes.
It announced profit forecast for the current fiscal year in the range of €1.1 billion ($1.27 billion) to €1.2 billion ($1.39 billion) – which is around €150 million ($174 million) lower than the company’s previous expectation. September saw several flight cancellations of the airline and therefore less traffic, which in turn seems to have spiraled into even less demand for its flights as customer apprehensions probably got aggravated. Spike in fuel costs further pressured margins for the company.
As for cabin crew strikes - something it's been facing since December 2017 - the airline has yet to settle disputes with union officials in countries such as Spain, Portugal, Germany and Belgium. But it has had managed to reach agreements with pilots in Ireland and Italy.
Probably adding to Ryanair’s woes is rival EasyJet’s claims on Friday that the latter is benefiting in some ways out of Ryanair’s problems. However, EastJet also expressed concerns about higher fuel costs and staff pay deals of its own.
Aroon Indicator for RYAAY shows an upward move is likely
RYAAY's Aroon Indicator triggered a bullish signal on June 20, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 250 similar instances where the Aroon Indicator showed a similar pattern. In of the 250 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 27, 2025. You may want to consider a long position or call options on RYAAY as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RYAAY advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for RYAAY moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for RYAAY turned negative on June 04, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RYAAY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. RYAAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.679) is normal, around the industry mean (2.824). P/E Ratio (16.752) is within average values for comparable stocks, (24.106). Projected Growth (PEG Ratio) (1.052) is also within normal values, averaging (2.428). Dividend Yield (0.015) settles around the average of (0.033) among similar stocks. RYAAY's P/S Ratio (1.935) is slightly higher than the industry average of (0.631).
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General Information
a holding company with interest in operating a low-fares airline
Industry Airlines
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