Ryanair (RYAAY) shares rallied 10.7% in the last trading session to close at $43.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.5% loss over the past four weeks.

The upside was owing to RYAAY's encouraging update on passenger volumes for fiscal 2025 (ended March 31). Ryanair reportedly carried 200.2 million passengers in its fiscal year ending March 2025, positioning itself as the first European airline to reach 200 million passengers in a single year. Also, Ryanair reported solid traffic numbers for March 2025, driven by upbeat air travel demand. The number of passengers transported on Ryanair flights was 15 million in March 2025, reflecting a 10% year-over-year increase. RYAAY operated more than 84,000 flights in March 2025.

This airline is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of -23.1%. Revenues are expected to be $2.32 billion, down 1.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ryanair, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RYAAY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ryanair is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, Frontier Group Holdings (ULCC), finished the last trading session 23.6% higher at $4.08. ULCC has returned -43% over the past month.

Frontier Group's consensus EPS estimate for the upcoming report has changed -5.3% over the past month to -$0.01. Compared to the company's year-ago EPS, this represents a change of +88.9%. Frontier Group currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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