DAVY VIEW

Liquidity is assured with a current cash balance of €4.1bn (Ryanair recently raised £600m under the UK’s CCFF) and 330 unencumbered B737s (77% of owned fleet, c.€7bn). Measures taken since mid-March have seen the average weekly cash burn drop from c.€200m in March to just over €60m in May. We expect that once the Boeing MAX aircraft returns to service, Ryanair will negotiate a deal - putting it back on a growth path in FY2022. The group currently expects to carry fewer than 80m passengers in FY21 (almost 50% below its original 154m target). We expect Ryanair to be the industry winner and set a price target of €13.5.