Deutsche Bank said the Irish airline had benefited from the troubles affecting longer haul,legacy carriers, which have battled rising debts and been forced to offer fewer flights.
"Not only do we see this trend continuing, but we also note other potentially positive catalysts on the horizon," analysts Geof Collyer and Anand Date wrote.
According to the analysts, Ryanair will benefit from focusing on more high return routes, keeping costs in check, and by reducing price discounting from newly launched bases.
Despite the rising price of fuel, Ryanair managed to exceed expectations when it reported fourth-quarter earnings on Monday. Strong yields in Northern Europe underpinned the results.
The company's Deputy CEO Michael Cawley told CNBC the results had been boosted because of "a massive shift to Ryanair" due to its lower fares and better service delivery.
—By CNBC's James Knight
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