Ryanair, Inc.’s RYAAY shares had an unimpressive run over the past six months. Shares of the company have plunged 11.8% in the same period, underperforming the Transportation - Airline industry’s 8.1% rise and the S&P 500’s 6.6% growth.
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Given the unimpressive price performance, let's take a deeper dive into the factors driving this transportation stock’s decline. In this write-up, we have assessed whether RYAAY, which currently carries a Zacks Rank #5 (Strong Sell), is likely to suffer more going forward.
Ryanair's operating expenses have increased sharply over the past five years, rising from approximately $2.7 billion in fiscal 2021 to $5.6 billion in fiscal 2022, $10.1 billion in fiscal 2023, $12.3 billion in fiscal 2024 and $13.4 billion in fiscal 2025. This nearly fivefold increase over the period reflects the airline's expanding operations, persistent inflation, higher fuel and labor costs and broader operating expenditures. While these investments have supported growth, the rapid increase in costs has continued to weigh on margins and profitability.
The sustained rise in operating expenses is also putting pressure on Ryanair's financial flexibility. Higher fuel prices, wage inflation, aircraft maintenance costs and airport charges are increasing the airline's cost base, making it more challenging to maintain its industry-leading low-cost advantage. Unless revenue growth continues to offset these higher expenses, the elevated cost structure could constrain earnings growth and cash generation.
Beyond cost inflation, Ryanair faces a challenging macroeconomic environment. Economic uncertainty, evolving tariff policies and rising geopolitical tensions are increasing operational and compliance risks. These factors could dampen consumer spending on travel, disrupt supply chains and complicate business planning, creating additional uncertainty for Ryanair's near-term performance despite its strong competitive position.
RYAAY’s Estimate Revisions Continue Heading South
Driven by the aforementioned headwinds, the Zacks Consensus Estimate for the June- quarter earnings has been revised 21.7% downward over the past 60 days and is pegged at $1.37 per share. Meanwhile, on a year-over-year basis, earnings for the second quarter of 2026 have been revised downward by 21.3%.
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Teekay Tankers Ltd TNK.
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.2%.
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Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
Teekay Tankers Ltd. (TNK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).