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Ryanair's (RYAAY) Q2 Earnings & Revenues Miss Estimates

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Ryanair Holdings (RYAAY - Free Report) reported second-quarter fiscal 2022 (ended Sep 30, 2021) earnings of $1.16 per share, which fell short of the Zacks Consensus Estimate of $1.80. In the year-ago period, the company incurred adjusted loss of 12 cents per share due to coronavirus-led weakness in air-travel demand.

Quarterly revenues of $2,104 million also fell shy of the Zacks Consensus Estimate of $2,338.8 million. The top line increased significantly year over year with improvement in traffic, thanks to the rollout of the EU Digital Covid Certificates, which facilitate travel with the European Union during the pandemic. Easing of coronavirus-led travel restrictions also drove traffic.

Ryanair’s profit for the quarter came in at €225 million against the year-ago quarter’s loss of €225.5 million. Traffic soared 86% year over year to 31 million. Load factor in the period was consistently above 80%.

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


Scheduled revenues climbed 57% year over year due to surge in traffic. Ancillary revenues jumped 95% year over year in the reported quarter due to strong performance in priority boarding and reserved seating, apart from robust traffic. The airline’s fuel and oil expenses increased by 67% year over year due to rise in sectors flown and higher jet fuel prices. Total operating expenses rose 47% year over year. Ryanair, carrying a Zacks Rank #3 (Hold), had cash of €4.24 billion as of Sep 30, 2021, higher than €3.15 billion as of Mar 31, 2021.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For fiscal 2022, the company expects to record a loss of €100-€200 million.

On a separate note, Ryanair said that it was considering delisting itself from the London Stock Exchange as its trading volumes have “reduced materially during 2021”.

Performance of Other Airlines

United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding $2.46 from non-recurring items) of $1.02 per share in the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.65. Operating revenues of $7,750 million surpassed the Zacks Consensus Estimate of $7639.7 million.

Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding 96 cents from non-recurring items) of 23 cents per share in the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 27 cents. Operating revenues of $4,679 million outperformed the Zacks Consensus Estimate of $4,581.5 million.

Spirit Airlines (SAVE - Free Report) , carrying a Zacks Rank #4, incurred a loss (excluding 83 cents from non-recurring items) of 69 cents per share in the third quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 95 cents. Operating revenues of $922.6 million, however, fell short of the Zacks Consensus Estimate of $935.4 million.