Back to top

Image: Bigstock

Ryanair to Cut Capacity by 20% Due to Weakness in Bookings

Read MoreHide Full Article

Ryanair Holdings plc (RYAAY - Free Report) will be cutting capacity by 20% for September and October due to a drop in bookings lately as coronavirus cases in some European Union countries surge. Following this news, shares of the company dipped 2.4% at the close of business on Aug 17.

The cuts will be focused on flights to countries on which travel restrictions have been imposed by the United Kingdom and Ireland because of a surge in COVID-19 cases. Moreover, the capacity reduction would mostly be in the form of decreased frequency rather than route closures.

Re-imposition of quarantine rules by United Kingdom and travel restrictions by Ireland have “notably weakened” Ryanair’s forward bookings over the last 10 days. The United Kingdom re-imposed quarantine rules on travelers coming from countries such as Spain, France and Sweden. Ireland’s measures have been regarded as "uniquely restrictive" by the airline.


It was only last month that the carrier resumed operations following months of fleet groundings amid coronavirus concerns. The airline is expected to have operated approximately 40% of its normal schedule in July. This Irish low-cost airline had planned to gradually increase flying schedules to 60% in August and 70% in September.

Passengers affected as a result of the capacity cuts in the next two months would be informed of the alternative options they can avail.

Zacks Rank & Key Picks

Ryanair carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Knight Swift Transportation Holdings Inc (KNX - Free Report) , Werner Enterprises Inc (WERN - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) . While Knight Swift sports a Zacks Rank #1 (Strong Buy), both Werner and Canadian Pacific carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Knight Swift, Werner and Canadian Pacific have rallied 22.2%, 22.7% and 17%, respectively, so far this year.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in