Ryanair Holdings' Strong Financial Performance and Growth Prospects Drive Price Objective Increase to €28

Ryanair's strong financial performance and growth prospects have led Bank of America Securities analyst Muneeba Kayani to increase the price target to €28.00 and maintain a Buy rating. The company reported a 4.1% YoY increase in traffic and a 16% YoY increase in fares in Q1 FY26, with ancillary revenues per passenger also growing. Kayani expects further upside due to market share gains and strong earnings growth projections.

Ryanair Holdings plc (RYAAY) has shown remarkable resilience and growth in its financial performance, leading Bank of America Securities analyst Muneeba Kayani to increase the price target to €28.00 and maintain a Buy rating. The company reported a 4.1% year-over-year (YoY) increase in traffic and a 16% YoY increase in fares during the first quarter of fiscal year 2026 (Q1 FY26), with ancillary revenues per passenger also growing [3].

The positive outlook is driven by strong summer bookings and higher ticket prices, which are expected to continue through the summer travel season. CEO Michael O’Leary highlighted the airline's robust demand, particularly for destinations in Southern Europe, despite record heat across the continent [3].

Ryanair's strategic focus on cost control and operational efficiency has been instrumental in its financial performance. The airline's ability to maintain pricing power and capture market share is evident in its strong ancillary revenue growth. Additionally, Ryanair's commitment to fleet modernization and fuel hedging has helped it navigate the volatile fuel market [1].

The airline's expansion plans, such as the $400M investment in Warsaw’s Modlin Airport, further underscore its growth prospects. This investment is expected to triple travel from the airport by 2030, making it the fastest-growing airport in Poland [3].

Kayani expects further upside due to market share gains and strong earnings growth projections. The analyst's price target of €28.00 reflects the potential for Ryanair to capitalize on the post-pandemic recovery in European leisure travel.

References:
[1] https://www.nasdaq.com/articles/latam-airlines-june-2025-traffic-improves-year-over-year
[2] https://www.ainvest.com/news/ryanair-summer-bookings-surge-beacon-leisure-demand-resilience-operational-leverage-2507/
[3] https://seekingalpha.com/news/4465843-ryanair-ceo-expects-q1-profits-to-double-thanks-to-strong-summer-bookings---report