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Ryanair (RYAAY) Q4 Loss Wider Than Expected, Revenues Beat
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Ryanair Holdings plc (RYAAY - Free Report) incurred a loss (excluding 16 cents from non-recurring items) of $1.68 per share in the fourth quarter of fiscal 2021 (ended Mar 31, 2021), wider than the Zacks Consensus Estimate of a loss of $1.65. Moreover, the amount of loss increased year over year. Results reflect coronavirus-induced disruptions to air-travel demand.
However, quarterly revenues of $142.7 million surpassed the Zacks Consensus Estimate of $122.4 million. The top line plunged 89.2% year over year.
Fiscal 2021 Results
Ryanair’s net loss came in at €815 million in fiscal 2021 against a profit of €1 billion in the year-ago period. Amid coronavirus-led travel-demand woes, the airline regarded fiscal 2021 as the most “challenging” in its 35-year history. Total revenues declined 81% year over year to €1.64 billion. Traffic dropped 81% year over year to 27.5 million due to travel restrictions and lockdowns imposed by several European governments. Load factor in the period was 71% compared with 95% in fiscal 2020.
Ryanair Holdings PLC Price, Consensus and EPS Surprise
Ancillary revenues fell 80% year over year in fiscal 2021 due to significant decline in traffic. The airline’s fuel costs declined 80% year over year due to reduced flying amid coronavirus-related fleet groundings as well as improved fuel burn. Total operating expenses declined 66% year over year. Ryanair, carrying a Zacks Rank #5 (Strong Sell), had cash of €3.15 billion at the end of Mar 31, 2021.
Ryanair expects first-quarter fiscal 2022 traffic to be between 5 million and 6 million guests. The airline anticipates its fiscal 2022 traffic to be in the low end of the previously-guided range of 80 million-120 million passengers. The carrier expects to benefit from pent-up demand for air travel in the second half of 2021 on hopes of successful vaccine roll outs and easing of European governments’ travel restrictions. Consequently, it expects to break-even in fiscal 2022. On a further positive note, Ryanair hopes to return to pre-coronavirus levels of growth in summer 2022.
Performance of Other Airline Stocks
United Airlines (UAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $3.21 from non-recurring items) of $7.5 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $6.97. Operating revenues of $3,221 million also fell short of the Zacks Consensus Estimate of $3,253.1 million.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
Alaska Air Group (ALK - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.46 from non-recurring items) of $3.51 per share in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $3.71. Moreover, revenues of $797 million surpassed the Zacks Consensus Estimate of $787.1 million.
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Ryanair (RYAAY) Q4 Loss Wider Than Expected, Revenues Beat
Ryanair Holdings plc (RYAAY - Free Report) incurred a loss (excluding 16 cents from non-recurring items) of $1.68 per share in the fourth quarter of fiscal 2021 (ended Mar 31, 2021), wider than the Zacks Consensus Estimate of a loss of $1.65. Moreover, the amount of loss increased year over year. Results reflect coronavirus-induced disruptions to air-travel demand.
However, quarterly revenues of $142.7 million surpassed the Zacks Consensus Estimate of $122.4 million. The top line plunged 89.2% year over year.
Fiscal 2021 Results
Ryanair’s net loss came in at €815 million in fiscal 2021 against a profit of €1 billion in the year-ago period. Amid coronavirus-led travel-demand woes, the airline regarded fiscal 2021 as the most “challenging” in its 35-year history. Total revenues declined 81% year over year to €1.64 billion. Traffic dropped 81% year over year to 27.5 million due to travel restrictions and lockdowns imposed by several European governments. Load factor in the period was 71% compared with 95% in fiscal 2020.
Ryanair Holdings PLC Price, Consensus and EPS Surprise
Ryanair Holdings PLC price-consensus-eps-surprise-chart | Ryanair Holdings PLC Quote
Ancillary revenues fell 80% year over year in fiscal 2021 due to significant decline in traffic. The airline’s fuel costs declined 80% year over year due to reduced flying amid coronavirus-related fleet groundings as well as improved fuel burn. Total operating expenses declined 66% year over year. Ryanair, carrying a Zacks Rank #5 (Strong Sell), had cash of €3.15 billion at the end of Mar 31, 2021.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Ryanair expects first-quarter fiscal 2022 traffic to be between 5 million and 6 million guests. The airline anticipates its fiscal 2022 traffic to be in the low end of the previously-guided range of 80 million-120 million passengers. The carrier expects to benefit from pent-up demand for air travel in the second half of 2021 on hopes of successful vaccine roll outs and easing of European governments’ travel restrictions. Consequently, it expects to break-even in fiscal 2022. On a further positive note, Ryanair hopes to return to pre-coronavirus levels of growth in summer 2022.
Performance of Other Airline Stocks
United Airlines (UAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $3.21 from non-recurring items) of $7.5 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $6.97. Operating revenues of $3,221 million also fell short of the Zacks Consensus Estimate of $3,253.1 million.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #3 (Hold), incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
Alaska Air Group (ALK - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.46 from non-recurring items) of $3.51 per share in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $3.71. Moreover, revenues of $797 million surpassed the Zacks Consensus Estimate of $787.1 million.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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