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Ryanair (RYAAY) June Traffic Results Hurt By Coronavirus Woes

Zacks Equity Research
·2-min read

Ryanair Holdings RYAAY posted bland traffic numbers for June, primarily due to weak air travel demand stemming from the COVID-19 pandemic. This Irish carrier reported a 97% year-over-year plunge in June traffic to merely 0.4 million guests. As wide-spread travel restrictions are still in place, the carrier’s LaudaMotion unit in Austria did not carry any passenger during the month. Nevertheless, in response to recent rise in demand, this Austria-based unit has reopened from Jul 1.

Ryanair operated 2800 scheduled flights in June with 95% of them arriving on time. On a rolling annual basis, total traffic at Ryanair (including the LaudaMotion unit) declined 27% to 107.2 million. Load factor (% of seats filled with passengers) was 95% on a rolling annual basis.

Owing to certain travel relaxations and air travel demand gradually increasing, this European low-cost carrier expects to carry more than 4.5 million passengers on its flights in July, per Reuters report. Thereby, we expect its July traffic numbers to sharply rise from May and June readings.

In response to the recent rise in demand, American Airlines AAL has started to book its flights to full capacity from Jul 1 and Delta Air Lines DAL expects to expand capacity by about 1,000 flights in both July and August. Both American Airlines and Delta carry a Zacks Rank #3 (Hold).

 Zacks Rank & A Key Pick

Ryanair currently carries a Zacks Rank #3.

A better-ranked stock in the Zacks Transportation sector is Canadian Pacific Railway Limited CP, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings (three to five years) growth rate for Canadian Pacific is estimated at 7.5%.

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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
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