Ryanair the Clear Winner Among European Airlines; FVE Unchanged; 40% Upside

Ryanair has exceeded precoronvirus numbers for the first time since the start of the pandemic. The airline carried 45.5 million passengers in the first financial quarter of fiscal 2023, while load factors exceeded 90%. EBIT was EUR 170 million and strong cash flows from advanced ticket sales for the summer period reduced net debt down to EUR 400 million from EUR 1.45 billion a quarter ago. We maintain our EUR 18.20 fair value estimate and believe shares are very attractive at current levels. Ryanair is poised to emerge as a definite winner among European airlines; it has the fleet, balance sheet, route network and cost structure to take market share from operationally and financially inefficient peers. It is the top pick in our European airline coverage.