We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strike Specter Looms on Ryanair (RYAAY) Due to Labor Woes
Read MoreHide Full Article
Shares of Ryanair Holdings (RYAAY - Free Report) have declined 25.4% year to date, underperforming its industry’s 16.2% fall.
Image Source: Zacks Investment Research
The stock may face further hiccups as RYAAY’s cabin crew may possibly call a strike in many European nations during the summer season. Per a Bloomberg report, pay-related talks with two Spanish unions (SITCPLA and USO) failed.
Following Ryanair's walkout from negotiations, the unions accused RYAAY, currently carrying a Zacks Rank #5 (Strong Sell), of acting in bad faith. The unions intend to return for further negotiations.
A representative of the SITCPLA labor group said, “We’re coordinating our actions with European counterparts.” The two unions apart, workers’ organizations in countries like Belgium, France, Italy and Portugal are also in favor of taking drastic actions if Ryanair does not agree to resume a dialogue.
As a matter of fact, if this impasse continues and the strike threat materializes, Ryanair’s plans to generate substantial traffic and revenues during the usually busy summer season may take a hit.
Last month, RYAAY’s management had projected the load factor (percentage of seats occupied by passengers) to reach the pre-pandemic levels at 94-95% in June-August. RYAAY CEO Michael O'Leary had said at that time, "Bookings over the last number of weeks have continued to strengthen – both the numbers are strengthening and average fares being paid through the summer are rising."
It will be interesting to see if the above labor problem hampers these plans. Stay tuned for further updates on this burning issue.
Stocks to Consider
Better-ranked stocks within the broader Transportation sector include the following:
Golar LNG Limited (GLNG - Free Report) currently has a Zacks Rank #2 (Buy). GLNG has a decent surprise history, as its earnings outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark once, the average surprise being 42.1%.
Shares of Golar LNG have rallied more than 100% in a year. A strong LNG market boosted the stock. The staggering inflation flared up the oil and natural gas prices. Moreover, amid the Russia-Ukraine war, Europe is likely to look for gas supplies outside Russia. This is expected to drive demand for the LNG vessels, which bodes well for GLNG.
Southwest Airlines (LUV - Free Report) : Continued recovery in air-travel demand bodes well for Southwest Airlines. Anticipating a steady improvement in bookings, the carrier expects to reap profits in the remaining three quarters of 2022 as well as during the full year. LUV's management predicts operating revenues to increase 12-15% in the second quarter of 2022 from the comparable period’s level in 2019. LUV is seeing strong bookings for the spring and summer trips.
The positivity surrounding the Southwest Airlines stock is evident from the Zacks Consensus Estimate for current-year earnings being revised in excess of 100% upward over the past 60 days. LUV has a Growth Style Score of B.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Strike Specter Looms on Ryanair (RYAAY) Due to Labor Woes
Shares of Ryanair Holdings (RYAAY - Free Report) have declined 25.4% year to date, underperforming its industry’s 16.2% fall.
Image Source: Zacks Investment Research
The stock may face further hiccups as RYAAY’s cabin crew may possibly call a strike in many European nations during the summer season. Per a Bloomberg report, pay-related talks with two Spanish unions (SITCPLA and USO) failed.
Following Ryanair's walkout from negotiations, the unions accused RYAAY, currently carrying a Zacks Rank #5 (Strong Sell), of acting in bad faith. The unions intend to return for further negotiations.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A representative of the SITCPLA labor group said, “We’re coordinating our actions with European counterparts.” The two unions apart, workers’ organizations in countries like Belgium, France, Italy and Portugal are also in favor of taking drastic actions if Ryanair does not agree to resume a dialogue.
As a matter of fact, if this impasse continues and the strike threat materializes, Ryanair’s plans to generate substantial traffic and revenues during the usually busy summer season may take a hit.
Last month, RYAAY’s management had projected the load factor (percentage of seats occupied by passengers) to reach the pre-pandemic levels at 94-95% in June-August. RYAAY CEO Michael O'Leary had said at that time, "Bookings over the last number of weeks have continued to strengthen – both the numbers are strengthening and average fares being paid through the summer are rising."
It will be interesting to see if the above labor problem hampers these plans. Stay tuned for further updates on this burning issue.
Stocks to Consider
Better-ranked stocks within the broader Transportation sector include the following:
Golar LNG Limited (GLNG - Free Report) currently has a Zacks Rank #2 (Buy). GLNG has a decent surprise history, as its earnings outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark once, the average surprise being 42.1%.
Shares of Golar LNG have rallied more than 100% in a year. A strong LNG market boosted the stock. The staggering inflation flared up the oil and natural gas prices. Moreover, amid the Russia-Ukraine war, Europe is likely to look for gas supplies outside Russia. This is expected to drive demand for the LNG vessels, which bodes well for GLNG.
Southwest Airlines (LUV - Free Report) : Continued recovery in air-travel demand bodes well for Southwest Airlines. Anticipating a steady improvement in bookings, the carrier expects to reap profits in the remaining three quarters of 2022 as well as during the full year. LUV's management predicts operating revenues to increase 12-15% in the second quarter of 2022 from the comparable period’s level in 2019. LUV is seeing strong bookings for the spring and summer trips.
The positivity surrounding the Southwest Airlines stock is evident from the Zacks Consensus Estimate for current-year earnings being revised in excess of 100% upward over the past 60 days. LUV has a Growth Style Score of B.