Barclays names European airline stocks you cannot afford to miss
perigon
Last updated: April 14, 2026
The primary risk identified for Ryanair is a continued rally in oil prices, coupled with the airline's decision not to engage in fuel hedging beyond FY2028. This strategic choice is predicted to lead to a significant collapse in profit margins.
The article recommends buying Ryanair, positing that its ultra-low-cost business model is poised for outperformance. However, the core risk lies in escalating oil prices. Without fuel hedging extending beyond FY2028, Ryanair faces a substantial threat to its profit margins. This situation is expected to compel the company to make concessions, potentially in the form of increased fares for passengers or a reduction in flight routes. The ultra-low-cost structure is highlighted as a key strength, suggesting resilience and a competitive edge even amidst adverse market conditions. The article implies that while oil price volatility is a concern, Ryanair's foundational economic model is robust enough to navigate such challenges, albeit with potential adjustments to pricing and network operations.
