'Rapid' recovery boosts Ryanair but airline to end all Belfast flights

The airline said it would cease operations at Belfast's two airports from the end of the summer schedule in October, citing the British government's refusal to suspend or reduce air passenger duty and a lack of post-pandemic recovery incentives

Ryanair boss Michael O'Leary said it was on course to hit upgraded guidance on passenger numbers, carrying more than 10m people this month as a post-pandemic recovery continues with strong bookings to year-end. File picture

Shares in Ryanair and IAG , which owns Aer Lingus and British Airways, rose by more than 2% as investors weighed the prospects for economic recovery, despite the highly contagious Delta variant.     

Ryanair boss Michael O'Leary said it was on course to hit upgraded guidance on passenger numbers, carrying more than 10m people this month as a post-pandemic recovery continues with strong bookings to year-end. 

The airline last month said it expected to fly between 90m and 100m people in the 12 months to the end of March 2022, against a peak of 149m before the Covid-19 pandemic.

"Ryanair is recovering strongly, much faster than other any airline in Europe... Bookings are increasing very rapidly," Mr O'Leary told a news conference in Lisbon. 

However, the airline also said it would cease operations at Belfast's two airports from the end of the summer schedule in October, citing the British government's refusal to suspend or reduce air passenger duty and a lack of post-pandemic recovery incentives from both airports.

"These aircraft will be reallocated to lower-cost airports elsewhere in the UK and Europe for the winter schedule, which starts in November," the company said in a statement.

US stocks hit record high

Meanwhile, US stock markets hit new record high levels as investors put aside their concerns over the Delta variant, with oil and travel-related stocks extending gains after the first full US approval of a Covid-19 vaccine raised hopes of a quicker economic recovery. 

Cruise operators including Carnival rose more than 2.5% in the US, while casino companies MGM Resorts and Wynn Resorts added between 2.5% and 6% on hopes the approval would increase US vaccination rates and spark a stronger rebound in tourism. Facebook, Google, and Amazon also rose. 

"Investors continue to favour what they see as a strong earnings and revenue side of technology despite the continuing Covid-19 crisis," said Rick Meckler, partner at Cherry Lane Investments in New Jersey. 

"In general, investors are more afraid to be out of this market than they are afraid of a market drop," he said.

A surge in Covid-19 infections of the highly contagious Delta variant has whipsawed Wall Street this month on concerns about a slowing economic recovery due to the health crisis. 

Oil prices extended their rally, driven by a bullish demand outlook. Brent crude rose to almost $71 a barrel. 

• Reuters, Irish Examiner