11 Best Airline Stocks to Buy Now

9. Ryanair Holdings plc (NASDAQ:RYAAY)

Number of Hedge Fund Holders: 23

Ryanair Holdings plc (NASDAQ:RYAAY) is a low-cost airline company that offers short distance, point-to-point travel across Europe and North Africa. It operates through five seperate airlines, which include Ryanair DAC, Lauda, Malta Air, Buzz, and Ryanair UK.

Bernstein analysts reaffirmed their favorable outlook on Ryanair Holdings plc (NASDAQ:RYAAY) on March 12, maintaining an Outperform rating and a €23.50 price target on the company. The analysts noted the airline’s long-term performance and its transformation from a high-growth firm to one focused on cash returns. Bernstein analysts also noted that Ryanair has been the best-performing stock in the European aviation industry over the long run. Furthermore, the airline’s financial health is strong, with annual free cash flow expected to be between €2-€2.5 billion. Ryanair’s balance sheet already shows a net cash position, and it has no defined benefit pension commitments. The company intends to maintain €3-4 billion in gross cash and reduce gross debt to hedge against economic downturns and position itself for counter-cyclical initiatives.

Conventum – Alluvium Global Fund stated the following regarding Ryanair Holdings plc (NASDAQ:RYAAY) in its Q4 2024 investor letter:

“Ryanair Holdings plc (NASDAQ:RYAAY), the European budget airline, was up 15.8%. The same theme continues – its business expansion is being hindered by Boeing delivery delays and it reduced its short term passenger growth guidance. It is not a lone ranger. All airlines, irrespective of their aircraft preferences, are affected by similar (or worse) delays. And although it receives some compensation, it is hardly enough to cover business disruption cost, for example paying for idle trained crew. (Pleasingly, in early January Ryanair announced it would take delivery of 29 new aircraft in 2025 – which was marginally above expectations). Meanwhile, its lowest cost position is only strengthening, it is continuing deals with the online travel agents which provide greater customer access, there are possibilities it may enter the package holiday segment (providing additional income streams), and its cash generation is fuelling share buybacks. All up, notwithstanding the growth setbacks from delivery delays, we are increasingly positive. We have adjusted our longer term maintainable earnings estimates to reflect greater contribution from auxiliary spending, and fewer shares outstanding, which leads us to a higher valuation. We bought a little during the quarter, such that at 6.4% of the Fund, our position now falls into the “greater than 5%” cohort of allowable investments (which we are comfortable with).”