Ryanair shares are up 55% this year. Is it too late to invest in them?

Ryanair shares have risen 55% since the beginning of the year, making the low-cost carrier the best European company in the Bloomberg World Airlines Index after Norwegian Air Shuttle AS, Bloomberg writes. Analysts maintain a positive view on the company's quotes, despite their proximity to historical highs. The key risks remain rising costs and a possible increase in the fiscal burden on air transportation in Europe.

Shares of Irish low-cost carrier Ryanair have risen by 55% since the beginning of the year. This put the company among the leaders among European air carriers in the Bloomberg World Airlines Index: by the dynamics of quotations this year, it is second only to Norwegian Air Shuttle. As Bloomberg notes, the Irish carrier outperformed its competitors due to high operating efficiency and profit growth, which was additionally supported by the company's €750 million ($881 million) share buyback program.

Overall, the Bloomberg World Airlines Index added 22% in 2025 and is on track for its best performance since 2017. Shares of European airlines focused on long-haul flights, including Air France-KLM, Deutsche Lufthansa and IAG Holding, which owns British Airways, showed growth. At the same time, securities of other major European low-cost carriers - EasyJet, Wizz Air and Jet2 - declined.

At trading on Euronext exchange in Dublin on December 23, shares of Ryanair decreased by 0.1%. At the same time, the securities remain near historical highs, notes Bloomberg, and analysts remain positive: the shares recorded 17 recommendations "buy", five - "hold" and only one - "sell". "The company has a clear focus and strong discipline in executing its business model, a proven management team, the lowest cost base and arguably one of the strongest balance sheets in the industry," said Davy analyst Stephen Furlong (quoted by Bloomberg).

Additional support for Ryanair's quotes this year was provided by the effect of the low base of last year. In 2024, the company's fleet growth was hampered by delays in the delivery of Boeing aircraft, and a conflict with online ticketing agencies forced the carrier to reduce fares, which negatively affected Ryanair's revenue at the height of the summer season.

At 2025, a recovery in demand for air travel allowed Ryanair to more than double its net profit in the first quarter. The company later raised its passenger growth forecast for the fiscal year ending in March, thanks to early deliveries of Boeing aircraft.

Ryanair is also showing flexibility in fleet management by reallocating planes between markets - both in response to environmental taxes and fees and to improve operational efficiency, Bloomberg specifies.

Technical changes were also a positive factor. In March, the company authorized shareholding for EU non-residents. Investors who previously held American depositary receipts were encouraged to switch to ordinary shares, which increased liquidity and simplified trading, said Barclays analyst Andrew Lobbenberg.

Bloomberg cites rising unit costs and possible higher fees for air travel in Europe compared to alternative modes of transportation, primarily railroads, as key risks for Ryanair. This could have a negative impact on demand from price-sensitive passengers.

At the same time, Ryanair expects to receive delivery of the remaining six Boeing Max 8 airplanes ordered earlier by early summer. This will allow the airline to expand its route network on the eve of the peak tourist season, summarizes Bloomberg.

This article was AI-translated and verified by a human editor