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Ryanair (RYAAY) Unveils Strategy for Carbon-Neutral Goal

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Ryanair Holdings (RYAAY - Free Report) has unveiled its decarbonisation strategy as the airline aims to become carbon neutral by 2050.

RYAAY expects 34% of the decarbonisation to take place through the increased use of sustainable aviation fuels (SAF). To this end, the airline is trying to accelerate the supply of SAF by working with the European Union and fuel suppliers. The company has partnered with Trinity College Dublin to establish Ryanair Sustainable Aviation Research Centre, which should help in research on SAF, Zero Carbon Aircraft Propulsion Systems and Noise Mapping.

Ryanair anticipates 32% of the decarbonisation to happen via technological & operational improvements. The company intends to continue investing in new technology and aircraft. It has invested $22 billion to purchase 210 Boeing 737-8200 ‘Gamechanger’ aircraft, which can carry 4% more passengers, reduce fuel consumption and carbon dioxide emissions by 16%.


Ryanair expects to reduce emissions by offsetting measures. Carbon capture offset projects and government policies and reforms, such as the introduction of the Single European Sky ATM Research (SESAR), are expected to help RYAAY meet 24% of its decarbonation target. The company expects to achieve the remaining 10% of its decarbonization target through better air traffic management.

Zacks Rank & Key Picks

Ryanair carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Transportation sector are as follows:

USA Truck sports a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in line in one), the average surprise being 64.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of USA Truck have rallied more than 56% in the past six months.

GATX Corporation (GATX - Free Report) carries a Zacks Rank #2 (Buy). The company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 27.7%.

Shares of GATX have appreciated more than 41% in the past six months.


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