Ryanair shares slow due to concerns over price war earnings

RYANAIR shares are underperforming in the market because there are concerns that its price war with rivals is holding back earnings.

According to independent stockbrokers Merrion Capital, the chief concerns holding back the growth are concerns over the current aggressive pricing environment, how long this is likely to persist, and whether it might further impact Ryanair’s profitability.

“Our view is that the current price war by Ryanair is a tactical move rather than a strategic gambit and so is not likely to affect its longer-term earnings growth profile,” Merrion analyst John Mattimoe said in a note yesterday.