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Ryanair (RYAAY) to Witness First-Ever Pilot Strike Next Week

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Per a Bloomberg report, Ryanair Holdings PLC (RYAAY - Free Report) will encounter its first-ever pilot strike next week in the home market of Ireland over its alleged failure to meet demands regarding new working practices.

The Irish Air Line Pilots’ Association (IALPA) representing Ryanair pilots stated that a polling by the carrier’s cockpit crew members resulted in a 94 to 1 vote in favor of industrial action including strikes. The walkouts are scheduled to be staged on Jul 12. The strike is expected to carry on for 24 hours and the IALPA will notify the airline regarding additional walkouts. However, the union is open to discussions to resolve the issue.

The carrier was able to avert similar strikes last December, acknowledging trade unions for the very first time in its 32 years in the industry. However, the airline has been unable to reach a definitive agreement in some countries.

With Ireland accounting for only 7% of Ryanair flights, majority of its customers is expected to be unaffected by this strike. However, the timing of the strike cannot be ignored. The turmoil comes at a time when the airline’s summer travel is already pressurized with last month’s cancellation of 1,100 flights due to air traffic control strikes, among other factors. Moreover, traditional holidays in Northern Ireland start from Jul 12 onward. Thus, the strike is likely to adversely impact travelers holidaying to Dublin during the time.


The union has also warned of a ripple effect arising from the strike at Ireland, which could affect flights elsewhere.

Earlier, Ryanair successfully signed agreements with the cabin crew in Britain and Italy. However, some of them will come together in Dublin on Jul 11 in their first pan-European summit to negotiate contract terms.

In a similar vein, German pilots are involved in a dispute with the airline over remuneration and work environment related problems. Final result of the ongoing voting process is due this month-end.

Zacks Rank & Key Picks

Ryanair carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) , Atlas Air Worldwide Holdings (AAWW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) . While GATX holds a Zacks Rank #2 (Buy), Expeditors and Atlas Air Worldwide sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of GATX, Atlas Air Worldwide and Expeditors have rallied more than 14%, 30% and 26%, respectively, in a year.

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