Bradley Caslin
Ryanair Holdings (NASDAQ:RYAAY) moved lower after Deutsche Bank downgraded the European airline stock to a Hold rating from Buy on its view that it is time for a pause.
Analyst Jaime Rowbotham noted that there was always a risk that customers would push back against further inflation and price increases. He pointed to Ryanair’s (RYAAY) earnings conference call, during which CEO Michael O’Leary spoke about “some degree of consumer resistance” and “some kind of recessionary feel out there.”
Rowbotham said the consumer pushback concern is supported by the weaker trends seen in Deutsche Bank’s fares tracker, which suggests Ryanair (RYAAY) may be having to discount more than its peers. “We now assume fares per passenger flat yoy in FY25 vs +3.4% before and this drives the bulk of the downgrade to net profit,” he warned.
Shares of Ryanair (RYAAY) were down 2.09% in afternoon trading in Dublin. In premarket action in the U.S., Ryanair (RYAAY) was down 2.77%.
