Ryanair holds its AGM in Dublin next week. Earlier this week it cut passenger targets for Dublin and Shannon, said it would not be placing new planes in the UK over Brexit uncertainty, and expressed caution on its full-year guidance.
However, its shares were up nearly 4% yesterday at over €13.30. While it has clawed back much of the loss seen in the wake of June’s Brexit vote, the stock is still down by over 12% from where it started the year.
Davy sees further momentum in Ryanair’s ‘Always Getting Better’ customer service improvement programme, increasing ancillary revenue growth and the economic benefits of a modernised fleet helping to boost the share price.
Elsewhere, Aer Lingus owner IAG is not eyeing any more acquisitions at present, but group chief executive Willie Walsh yesterday told an aviation conference in London that further industry consolidation is likely.
“We’re structured to facilitate further consolidation if the right opportunity comes along,” said Mr Walsh. “We’re not actively looking at anything in particular at the moment.”
IAG will also review its future fleet plans as global economic growth slows and Brexit uncertainty continues.
Mr Walsh said the group will cut spending in answer to slowing growth, low oil prices and a weakening pound and may lease more planes, rather than buy in the future.
At the same conference, EasyJet boss Carolyn McCall said her airline had only seen a short-term impact on demand after June’s Brexit vote, but added that plans to acquire an operating certificate in another EU country, so EasyJet can continue to operate as it does when the UK finally leaves the EU, are “quite advanced”.
She added that EasyJet would consider providing feeder flights for the likes of Air France and others flying long-haul routes from European hubs.
Ryanair has been heavily linked with a number of airlines regarding such a service, including IAG and Norwegian Air Shuttle.