0920 GMT - Ryanair has scope for more shareholder returns with free cashflow yields stepping up to over 10% by fiscal 2026 as capital expenditures decrease, RBC Capital Markets analyst Ruairi Cullinane says in a note. The budget airline lowers 3Q unit costs slightly on fuel hedge savings, strong interest income and a modest aircraft-delay compensation. Passenger numbers are expected to rise around 8% to with a 198 million to 200 million range for fiscal 2025, but it lowers expectations for fiscal 2026 to 210 million from a previous 215 million passengers given Boeing's aircraft-delivery delays. "We see longer term attractions to Ryanair's low-cost, and relatively high-margin--and so high return on capital employed/return on invested capital--business model," Cullinane says.(anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
November 04, 2024 04:20 ET (09:20 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.