Ryanair Holdings (RYAAY, Financial), the leading ultra-low-cost carrier in Europe that is headquartered in Ireland, was the largest contributor for the quarter. The company’s fiscal year 2020 second-quarter results exceeded consensus estimates. Ryanair’s 11% revenue growth was in line with our expectations and its revenue per available seat mile beat our expectations and also appears well positioned to achieve management’s 2-3% growth target for fiscal year 2020. Management expects traffic to grow by 8% to 153 million for the fiscal year, which is slightly ahead of our estimates. We are also glad to see signs of a more rational competitive environment as Ryanair’s peers reduce capacity, which should help pricing going forward, and labor relations continue to improve. In addition, despite the reduction in Boeing MAX 737 deliveries, management did not reduce its passenger growth guidance for fiscal year 2021. We believe the lower supply growth should be a tailwind to pricing.
From David Herro (Trades, Portfolio)'s Oakmark International Fund fourth-quarter 2019 shareholder commentary.
