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Ryanair


Philip Miller
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Hi Philip, thanks for the question.

 

Yes indeed, Ryanair announced today it will resume 40% of its planned July flights, a decision that is subject to national and EU authorities lifting current travel restrictions. 

The airlines said it will start operating around 1,000 flights as of July 19, covering around 90% of the pre-coronavirus route network. 

“After 4 months, it is time to get Europe flying again so we can reunite friends and families, allow people to return to work, and restart Europe’s tourism industry, which provides so many millions of jobs,” stated CEO Eddie Wilson.

This news helped the Ryanair stock price to erase morning’s gains as the price action was trading at a 5-week low. Shares of the company ultimately finished the day 2.5% higher. If the bullish momentum continues to dominate the environment, the buyers would want a test of the 10.00 handle, which is an important price level. Hence, if the airline can start flying again as it plans to, we can definitely expect the price action to trade at higher prices than it currently does. 
 

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Hi Philip,

Shares of Ryanair (LSE: RYA) have been declining recently as markets reacted to the terrible quarterly numbers report from the airline and the government’s decision to reiterate a 14-day quarantine on travellers travelling back from Spain. 

Last week, the low-cost airline reported a first-quarter Q1 loss of €185m. The company reported the €243m net profit for the same period last year, providing us with a clear picture of hard the coronavirus has pummelled the FTSE 250 stock and its peers. Ryanair said that the three months through June have been “the most challenging” in its 35-year history. 

After the introduction of lockdowns and travel bans, the number of Ryanair passengers between mid-March and the end of June plummeted 500,000, compared to 41.9 million from last year. While the airline managed to cut costs by 85% over the period, it wasn’t enough to compensate for the 95% decline in revenue to €125m.
 

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