{"id":615725,"date":"2026-09-05T23:04:17","date_gmt":"2026-09-05T23:04:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/615725\/"},"modified":"2026-09-05T23:04:17","modified_gmt":"2026-09-05T23:04:17","slug":"ryanairs-earnings-could-get-worse-before-the-shares-get-better-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/615725\/","title":{"rendered":"Ryanair\u2019s earnings could get worse before the shares get better \u2013 The Irish Times"},"content":{"rendered":"<p class=\"c-paragraph paywall \"><a href=\"https:\/\/www.irishtimes.com\/tags\/barclays\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/barclays\">Barclays<\/a> thinks <a href=\"https:\/\/www.irishtimes.com\/tags\/ryanair\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/ryanair\">Ryanair <\/a>is a buy. It also thinks its earnings are about to get much worse.<\/p>\n<p class=\"c-paragraph paywall \">The bank has come up with various \u201cquirky\u201d reasons to be bullish on the airline. For one, Europe\u2019s growing focus on competitiveness will likely lead governments to ease some costs imposed by green regulation, says Barclays. <\/p>\n<p class=\"c-paragraph paywall \">Despite being one of Europe\u2019s most fuel-efficient airlines, Ryanair\u2019s low fares mean green costs take up a relatively large share of the ticket price, making any easing of the rules particularly valuable.<\/p>\n<p class=\"c-paragraph paywall \">Barclays also likes Ryanair\u2019s decision to bring more operations in-house, helping it maintain its formidable cost advantage. And it sees potential in the large customer base being built through MyRyanair accounts, which could eventually allow Ryanair to make more money from passengers by selling them package holidays and other services. However, there is also a catch.<\/p>\n<p class=\"c-paragraph paywall \">Ryanair has just cut its passenger target for the year to March 2027 from 216 million to 214 million, partly to limit its exposure to expensive unhedged fuel during the loss-making winter months. <\/p>\n<p class=\"c-paragraph paywall \">The move is expected to reduce winter losses by \u20ac70 million to \u20ac100 million.<\/p>\n<p class=\"c-paragraph paywall \">Barclays is more worried about what happens after that. It has slashed its forecast for Ryanair\u2019s 2028 profits, leaving it 42 per cent below the current market consensus. <\/p>\n<p class=\"c-paragraph paywall \">Ryanair has only 15 per cent of its 2028 fuel hedged, compared with 80 per cent for 2027, leaving it heavily exposed if fuel prices remain high.<\/p>\n<p class=\"c-paragraph paywall \">Despite shares falling over 20 per cent this year, Barclays reckons this weakness is not fully priced in, saying it has captured \u201csome but not all\u201d of the fuel-related pressure. It expects consensus 2028 estimates to fall \u201cvery significantly\u201d when investors next focus on Ryanair\u2019s results.<\/p>\n<p class=\"c-paragraph paywall \">For Ryanair shareholders, in other words, the good news may have to wait for the bad news to play out.<\/p>\n","protected":false},"excerpt":{"rendered":"Barclays thinks Ryanair is a buy. It also thinks its earnings are about to get much worse. The&hellip;\n","protected":false},"author":2,"featured_media":615726,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[18278,72,61,60,1899],"class_list":["post-615725","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-barclays","tag-business","tag-ie","tag-ireland","tag-ryanair"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/615725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=615725"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/615725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/615726"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=615725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=615725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=615725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}