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Ryanair (RYAAY) Rejects DAA's Proposal for 88% Price Increase
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Ryanair Holdings (RYAAY - Free Report) has rejected Dublin Airport Authority’s (“DAA”) application for an 88% price increase in airport charges, citing that the DAA mismanaged COVID-19 recovery, which caused thousands of passengers to be stranded in long security queues that wound outside the terminal building. The company feels that Irish air traffic and tourism’s recovery from the pandemic is possible only through lower airport charges and airfares. Thus, there “is no justification for an 88% increase in DAA’s already high airport charges”.
Ryanair further added that Dublin Airport traffic is recovering only due to the government-funded Traffic Recovery Scheme, which lowers charges at Dublin Airport until March 2023-end. Hence, the 88% price increase from 2023 onward would be an exploitation of this Government Traffic Recovery Scheme, feels RYAAY management.
The DAA is seeking to hike prices because of its higher capital spending on "tunnelling" under existing runways. Ryanair CEO, Eddie Wilson, said that instead of “unnecessary gold-plated facilities”, the DAA should focus on “fixing recruitment to deliver an efficient customer service through security”.
Wilson called on the minister for finance, Paschal Donohoe, to issue a shareholder direction to the DAA to abandon any application for cost increases at Dublin Airport so that the Irish aviation, Irish tourism and the DAA can be protected from a traffic collapse.
Zacks Rank & Key Picks
Ryanair carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Transportation sector are as follows:
Golar LNG Limited (GLNG - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 42.1%. You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of Golar LNG have rallied more than 100% in a year.
Star Bulk Carriers (SBLK - Free Report) carries a Zacks Rank #1. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 7.1%.
Shares of Star Bulk have gained more than 96% in a year.
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Ryanair (RYAAY) Rejects DAA's Proposal for 88% Price Increase
Ryanair Holdings (RYAAY - Free Report) has rejected Dublin Airport Authority’s (“DAA”) application for an 88% price increase in airport charges, citing that the DAA mismanaged COVID-19 recovery, which caused thousands of passengers to be stranded in long security queues that wound outside the terminal building. The company feels that Irish air traffic and tourism’s recovery from the pandemic is possible only through lower airport charges and airfares. Thus, there “is no justification for an 88% increase in DAA’s already high airport charges”.
Ryanair further added that Dublin Airport traffic is recovering only due to the government-funded Traffic Recovery Scheme, which lowers charges at Dublin Airport until March 2023-end. Hence, the 88% price increase from 2023 onward would be an exploitation of this Government Traffic Recovery Scheme, feels RYAAY management.
The DAA is seeking to hike prices because of its higher capital spending on "tunnelling" under existing runways. Ryanair CEO, Eddie Wilson, said that instead of “unnecessary gold-plated facilities”, the DAA should focus on “fixing recruitment to deliver an efficient customer service through security”.
Ryanair Holdings PLC Price
Ryanair Holdings PLC price | Ryanair Holdings PLC Quote
Wilson called on the minister for finance, Paschal Donohoe, to issue a shareholder direction to the DAA to abandon any application for cost increases at Dublin Airport so that the Irish aviation, Irish tourism and the DAA can be protected from a traffic collapse.
Zacks Rank & Key Picks
Ryanair carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks within the broader Transportation sector are as follows:
Golar LNG Limited (GLNG - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 42.1%. You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of Golar LNG have rallied more than 100% in a year.
Star Bulk Carriers (SBLK - Free Report) carries a Zacks Rank #1. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average surprise being 7.1%.
Shares of Star Bulk have gained more than 96% in a year.