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Ryanair (RYAAY) Posts Q1 Loss, Expects Q2 Loss to be Smaller

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Ryanair Holdings (RYAAY - Free Report) incurred a loss of 93 cents per share in the first quarter of fiscal 2021 (ended Jun 30, 2020), narrower than the Zacks Consensus Estimate of a loss of $1.45. In the year-ago period, the company reported earnings of $1.2 per share. The carrier regarded first-quarter fiscal 2021 as the most challenging in its 35 years of history with EU governments’ travel restrictions and lockdowns across several nations. More than 99% of the airline’s fleet was grounded from mid-March to June-end.

Quarterly revenues of $137.8 million missed the Zacks Consensus Estimate of $138.6 million. Moreover, the top line plunged 94.7% year over year due to massive decline in traffic.

Ryanair’s loss after tax came in at €185.1 million in first-quarter fiscal 2021, against profit after tax of €242.9 million in the year-ago period. Traffic dropped 99% year over year to 0.5 million due to weak travel demand and flight restrictions amid coronavirus concerns. Load factor deteriorated to 61% from 96% in first-quarter fiscal 2020.

Ancillary revenues fell 97% year over year in the reported quarter. The airline’s fuel costs declined 99% year over year due to reduced flying amid coronavirus-related fleet groundings. Total operating expenses fell 85% year over year. Ryanair, carrying a Zacks Rank #3 (Hold), had cash of more than €3.9 billion as of Jun 30, 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Outlook

Ryanair expects to fly approximately 60 million passengers in fiscal 2021, indicating a fall of 60% from fiscal 2020. Having resumed operations across several routes in July, the carrier estimates second-quarter fiscal 2021 loss to be smaller than the first. In July, it expects to operate approximately 40% of its normal schedule. Flying schedules are expected to increase in the coming months, with the airline hoping to operate 60% of the usual schedule in August and 70% in September.

Performance of Other Airline Stocks

Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $4.58 from non-recurring items) of $4.43 per share in the June quarter, wider than the Zacks Consensus Estimate of a loss of $3.97. Total revenues in the quarter came in at $1,468 million, surpassing the Zacks Consensus Estimate of $1,400.8 million.

Southwest Airlines Co. (LUV - Free Report) , carrying a Zacks Rank #3, incurred a loss of $2.67 per share (excluding $1.04 from non-recurring items) in the second quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.53. Meanwhile, operating revenues of $1,008 million beat the Zacks Consensus Estimate of $868.9 million.

Alaska Air Group (ALK - Free Report) , carrying a Zacks Rank #3, incurred a loss of $3.54 per share (excluding $1.81 from non-recurring items) in the second quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $3.39. Revenues came in at $421 million, surpassing the Zacks Consensus Estimate of $307.7 million.

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