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Ryanair (RYAAY) Cuts Fiscal 2022 Guidance on Omicron-Led Woes

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Ryanair Holdings (RYAAY - Free Report) has reduced its fiscal 2022 guidance as Omicron fears and travel restrictions across Europe have weakened close-in Christmas & New Year bookings.

RYAAY now anticipates fiscal 2022 traffic to be little less than 100 million passengers compared with the previous expectation of just above 100 million. Net loss is expected to be in the range of €250-€450 million compared with the previously guided range of €100-€200 million.

Ryanair has lowered its December traffic forecast to 9-9.5 million passengers from 10-11 million expected earlier. The traffic forecast has been lowered due to the effects of government travel restrictions, especially France and Germany’s ban on UK travelers and the suspension of EU flights to/from Morocco. The airline has slashed its planned January schedule capacity by 33%. It now expects January traffic to be 6-7 million from 10 million expected previously. RYAAY is yet to decide on schedule cutbacks for February and March 2022.

Zacks Rank & Key Picks

Ryanair carries a Zacks Rank #4 (Sell).

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