Irish low-cost carrier Ryanair Holdings Plc (GB:0A2U) (NASDAQ:RYAAY) is eyeing Spain to expand its operations by 40% in the country by 2030. Eddie Wilson, CEO of Ryanair DAC, said that the air carrier plans to open five new bases, provided the country can offer competitive airport charges. Group CEO Michael O’Leary earlier outlined a plan to invest €5 billion in Spain, allocate 33 new jets to its airports, and ramp up to over 1000 operational routes from the current 730.
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Here’s More About Ryanair’s Spanish Ambitions
At a tourism event held yesterday, Wilson said that the group hopes to expand passenger traffic to Spain to 77 million people from the current 55 million targeted for 2024. Competitive airport charges are one hindrance that could prompt Ryanair to reconsider its Spain expansion plans.
The country is quickly gaining ground as one of the most frequented travel destinations in Europe. Notably, Spain’s Transport Minister Oscar Puente confirmed the 4.09% increase in tariffs by airport operator Aena. He added that despite the hike, charges would remain below the pre-pandemic levels. Wilson is proposing that these charges be reserved. Further, he is urging the country to incentivize Spain and attract tourists throughout the year, not just to the coastal areas but also to the other regions.
Wilson said that Ryanair looked to deploy the new Max 10 aircraft, ordered from Boeing (NYSE:BA), in Spain, where charges are expected to remain constant until 2026-27. Ryanair is expected to receive the delivery of 400 new jets from Boeing in the next few years. Spain’s airport charges will determine if and how many of those will be deployed to the Iberian region, Wilson added.
What is the Price Target for Ryanair?
On TipRanks, Ryanair Holdings plc’s share price target of $136.50 implies 8.3% upside potential from current levels. Also, 0A2U stock has a Moderate Buy consensus rating based on two Buys and one Hold rating.
