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Ryanair (RYAAY) Q3 Loss Narrower Than Expected, Revenues Lag

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Ryanair Holdings (RYAAY - Free Report) incurred a loss (excluding 8 cents from non-recurring items) of $1.62 per share in the third quarter of fiscal 2021 (ended Dec 31, 2020), narrower than the Zacks Consensus Estimate of a loss of $1.95. In the year-ago period, the company reported earnings of 43 cents per share. Results reflect coronavirus-induced disruptions to air-travel demand.

Quarterly revenues of $406.9 million lagged the Zacks Consensus Estimate of $495 million. The top line plunged 80.7% year over year due to massive decline in traffic.

Ryanair’s net loss for the quarter came in at €306 million, against a profit of €88 in the year-ago period. Traffic dropped 78% year over year to 8.1 million as a result of travel restrictions imposed by European Union governments to curb the spread of the coronavirus pandemic. Load factor in the period was 70%.

Ryanair Holdings PLC Price, Consensus and EPS Surprise

Ryanair Holdings PLC Price, Consensus and EPS Surprise

Ryanair Holdings PLC price-consensus-eps-surprise-chart | Ryanair Holdings PLC Quote

 

Ancillary revenues fell 77% year over year in the reported quarter. The airline’s fuel costs declined 78% year over year due to reduced flying amid coronavirus-related fleet groundings as well as improved fuel burn. Total operating expenses declined 63% year over year. Ryanair, carrying a Zacks Rank #4 (Sell), had cash of €3.5 billion.

Amid coronavirus-related uncertainties, Ryanair anticipates fiscal 2021 net loss (pre-exceptional items) to be between €850 million and €950 million.

Performance of Other Airline Stocks

United Airlines (UAL - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.

Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #3, incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. Meanwhile, operating revenues of $2,013 million lagged the Zacks Consensus Estimate of $2,117.5 million.

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