Shares in Ryanair, IAG and easyjet rise after rival Monarch collapses

Shares in easyJet, Ryanair and Aer Lingus owner IAG rose in morning trading following the collapse of rival Monarch.

Investors piled into the stocks after interpreting the airline's demise as a boon for competitors.

EasyJet was up more than 4%, Ryanair rose 3% and IAG shares increased 2%.

Neil Wilson, senior market analyst at ETX Capital, said: "The failure of Monarch is good news for rivals. It means fewer seats to fill sector-wide - more than six million in the case of Monarch.

"This should mean Ryanair and easyJet can comfortably improve load factors, even if the reputation of the former has suffered of late.

"This should be positive for margins despite pricing pressures."

Monarch's collapse, which has sparked the UK's biggest peacetime repatriation operation, caps a torrid period for the budget airline sector and marks the third failure this year in Europe, following Alitalia and Air Berlin.

Mr Wilson described the failures as a "symptom of over-capacity and overly-aggressive pricing".

"Many more mid-sized carriers are limping on thanks to cheap oil but further consolidation may be necessary.

"Ryanair is among the last standing - its reputation can take a few more knocks," he added.

Ryanair has been dogged by a wave of flight cancellations in recent weeks after the company miscalculated pilot leave.

More in this Section

UK financial watchdog fines Merrill Lynch for failing to report transactions

Manager defrauded Bombardier of €774,000 to buy Harley-Davidsons and US holidays

Research shows more Irish companies offering perks to keep employees

Henkel Ireland announces 40 'highly skilled' jobs at its new 3D printing operation in Dublin

Today's Stories

RBS pegs its bill for claims by SMEs in Britain to £400m

Room for dollar and sterling recoveries to gain real momentum

Chinese presence lifts Philips sales

Markets won’t ‘panic’ over Catalonia


Delving into the Irish tradition of Jack O'Laterns

Making Cents: How to call the scammers’ bluff

Why Hollywood gave superhero Thor a makeover

A helicopter put a piano on the 150-foot roof of Blarney Castle and other stories from the Cork Jazz Festival archives

More From The Irish Examiner