Strikes by French air traffic control and by ground staff in Berlin have pushed up “multiple headwinds” against Ryanair achieving its earnings guidance, according to Merrion Capital analysts.
Senior equity analyst Darren McKinley and equity analyst Dylan Simmonds in a research note said they maintained the broker’s “hold” recommendation on the shares as the airline faces challenges in France and Germany.
Shares in Ryanair were trading at one stage yesterday about 1% lower, at €14.21, to show a fall of around 2% since the start of the year.
Over the past year, the shares have traded as low as €10.46 in the days following the UK’s vote to quit the EU in June, and have spiked as high as €15.14 in the early weeks of this year.
Merrion said since the airline presented its full-year guidance in February it was forced to cancel flights in France and at Berlin’s Schonefeld and Tegel airports.
Nonetheless, “Ryanair plans to more than triple the number of its planes based at Frankfurt airport next winter to 24,” the analysts said.
“The expansion is in keeping with management’s strategy to grow market share in Germany over the coming years, with the hope of overtaking Air Berlin in market share.”
Yesterday, Ryanair said it will extend further east than ever before with flights from Ukraine, targeting a market that has huge pent-up demand while heightening competition with rival Wizz Air.
Services will begin in October.
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