Ryanair Holdings (RYAAY - Free Report) posted disappointing traffic numbers for August, primarily due to weak air travel demand stemming from the COVID-19 pandemic. This Ireland-based carrier reported a 53% year-over-year plunge in August traffic to merely 7 million guests.
Ryanair operated approximately 60% of the normal August schedule with a load factor (% of seats filled with passengers) of 73%. On a rolling-annual basis, total traffic at Ryanair (including the LaudaMotion unit) declined 40% to 88.9 million.
Apart from the traffic results, Ryanair was in news recently when it announced that it 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 increase. The cuts will be focused on countries where the spurt in COVID-19 cases resulted in increased travel restrictions by the UK and Ireland.
Per a Reuters report, Ryanair will trim its workforce less than the original estimate of 3,000. This favorable development followed the decision taken by 97% of its pilots and more than 90% of its cabin crew to accept pay cuts as the coronavirus continues to ravage the aviation industry by shrinking air-travel demand significantly.
Zacks Rank & Stocks to Consider
Ryanair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , United Parcel Service, Inc. (UPS - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) . Knight-Swift sports a Zacks Rank #1(Strong Buy), while UPS and Werner carry a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, UPS and Werner is pegged at 15%, 7.7% and 8.5%, respectively.
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