Proactive Investors - Ryanair (LON:RYA) is a buy with Peel Hunt after the budget airline posted total passengers ahead of forecasts for March, with a target price of €20.
Competitor Wizz Air (LON:WIZZ) also remains a buy with the broker at a target price of 3,650p, although it performed below expectations in last month.
Regarding Ryanair, Peel Hunt said March passenger volumes were “positive” at 12.6mln passengers, representing 12.5% year-on-year growth and a load factor of 93%.
“This increases the total number of passengers to 168.6mln, higher than the 168mln previous guidance and out 167.5mln” on a rolling 12-month basis, said the broker.
This is a positive for the carrier, as it was achieved despite air traffic control strikes in France and with Easter looming, bodes a positive for yields.
Wizz Air during March operated “slightly less capacity” than the broker anticipated, with 4.63mln seats compared to 4.8mln.
Despite a load factor of 92.2% being 2.2% ahead of its estimates, passenger volume growth of 72.3% to 4.267mln was still below expectations of 4.32mln.
For the fiscal year 2023, volumes of 51.07mln were lower than estimates of 51.924mln due to low numbers in the fourth quarter.
However, the broker retained its buy due to a “high level of growth and recent weakness in the oil price” which should allow the airline to extend hedging at advantageous rates.