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Ryanair (RYAAY) Q2 Loss Narrower Than Expected, Revenues Beat

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Ryanair Holdings (RYAAY - Free Report) incurred a loss (excluding $1.08 from non-recurring items) of 12 cents per share in the second quarter of fiscal 2021 (ended Sep 30, 2020), narrower than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago period, the company reported earnings of $4.51 per share. Results reflect coronavirus-induced disruptions to air-travel demand. Amid travel restrictions, Ryanair operated only 50% of its normal schedule in fiscal second quarter.

Quarterly revenues of $1,228.4 million surpassed the Zacks Consensus Estimate of $1,174.1 million. However, the top line plunged more than 60% year over year due to massive decline in traffic.

Ryanair’s loss for the quarter came in at €225.5 million, against profit of €910.2 million in the year-ago period. Traffic dropped 62% year over year to 16.7 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 72%.

Ancillary revenues fell 58% year over year in the reported quarter. The airline’s fuel costs declined 58% year over year due to reduced flying amid coronavirus-related fleet groundings as well as improved fuel burn.  Total operating expenses declined 50% year over year. Ryanair, carrying a Zacks Rank #4 (Sell), had cash of €4.5 billion as of Sep 30, 2020.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Outlook

Ryanair expects its traffic to be approximately 38 million in fiscal 2021. During fiscal first quarter, the airline estimated its fiscal 2021 traffic to be approximately 60 million. Additionally, the carrier forecasts losses to increase in the second half of fiscal 2021 from the first.

Performance of Other Airline Stocks

Spirit Airlines Inc. (SAVE - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss of $2.32 per share (excluding $1.25 from non-recurring items) in the June quarter, narrower than the Zacks Consensus Estimate of a loss of $2.63. Meanwhile, operating revenues of $401.9 million beat the Zacks Consensus Estimate of $384.7 million.

Southwest Airlines Co. (LUV - Free Report) , carrying a Zacks Rank #3, incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.

SkyWest Inc (SKYW - Free Report) , carrying a Zacks Rank #3, reported earnings of 66 cents per share, surpassing the Zacks Consensus Estimate of 9 cents. Quarterly revenues of $457.5 million surpassed the Zacks Consensus Estimate of $426.8 million.

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