(BFM Bourse) – The low-cost airline expects to carry 183.5 million people for its fiscal year ending next March due to delays in Boeing aircraft deliveries. Forecasts for the summer period also point to a sagging price environment. The action suffers on the Dublin Stock Exchange.
Ryanair fails to accentuate its good start to the year on the stock market. Like all airlines, the group has benefited from the strength of travel demand, which has enabled it to post an increase of nearly 30% since January 1.
But the publication of the results for the first quarter of the 2023-2024 financial year, ending next March, is sanctioned by investors. On the Dublin Stock Exchange, the action of the low-cost Irish company fell 4% to 15.83 euros around 3 p.m.
Benefiting from a very favorable basis for comparison, the company headed by the indescribable Michael O’Leary has certainly published results that have risen sharply, and even exceeded expectations. Revenues over the period from April to the end of June jumped 40% to 3.65 billion euros, thanks to a good Easter period. Turnover for the first quarter of 2022-2023 had been penalized by reservations at half mast due to the repercussions of the war in Ukraine.
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“Cautious” prospects
Net income group share amounted to 663 million euros, i.e. nearly four times more than over the same period of the 2022-2023 financial year. And more than the approximately 620 million euros anticipated by analysts, according to a consensus quoted by the Stifel bank.
But on the outlook side, Ryanair has been forced to lower its forecast for passengers carried for the whole of the current financial year, now expecting 183.5 million people against 185 million previously. The low-cost airline cited delays in aircraft deliveries from Boeing in the spring and next fall to justify this revision.
Beyond that, Stifel stresses that the outlook delivered by the company is “rather cautious”. Ryanair says bookings for the second quarter, ie the period from July to September, are “robust”. But the company also notes “a decline” in the pricing environment since the “end of June-beginning of July”.
A certain caution which can therefore encourage investors to take their profits on the title.
Fears due to fires in Greece?
Danni Hewson, head of financial analysis at AJ Bell, for his part links the fall in the action, with those of other airlines, to the fires which ravage Greece, the flagship tourist destination of the summer.
“Testimonials from holidaymakers forced to leave hotels and sleep in gyms or on the streets could make others think twice about booking last-minute vacations for fear of being caught up in the chaos too,” she said.
In addition to Ryanair, easyJet dropped 2.9% on the London Stock Exchange and, on the same stock market, Wizz Air, a low-cost Hungarian airline, lost 4.8%.
The drop in shares of these airlines “suggests that investors are concerned that they will not meet short-term earnings forecasts and that they will incur additional costs due to the repatriation flights they will have to make to bring customers home,” continues Danni Hewson.
In Paris, Air France-KLM resists well (-0.56%) obviously having a much larger and more diversified network than the low-cost companies.
Julien Marion – ©2023 BFM Bourse