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Ryanair Likely to Incur Up to EUR 300 Million Loss in FY21
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Per a Reuters report, European low-cost carrier Ryanair Holdings (RYAAY - Free Report) is likely to incur a net loss in the band of €200-€300 million ($226-$339 million) in fiscal year 2021 (ending Mar 31, 2021). According to the report, Ryanair’s CEO Michael O’Leary provided this bleak forecast in an interview to Spanish newspaper, Expansion.
The drab projection is primarily prompted by the coronavirus-induced lackluster air-travel demand scenario. In fact, due to the ongoing global health peril, majority of Ryanair’s fleet remains grounded. Notably, in May, this Zacks Rank #2 (Buy) Irish carrier operated only 701 scheduled flights including those for rescue operations, relief and medicine supply on behalf of various EU governments. Also, with the coronavirus pandemic disrupting air-travel demand, Ryanair reported a 99.5% year-over-year plunge in May traffic to merely 0.07 million guests. Due to travel bans and curbs, Ryanair expects its traffic numbers for June to be persistently minimal.
In a bid to adjust to this extremely low-demand scenario, Ryanair is cutting costs to drive its bottom line. The company reduced its average weekly cash burn rate to around €60 million in May from approximately €200 million in March.
Coming back to O’Leary’s comments, he stated on a more positive note that the carrier is expected to make profits again starting fiscal 2022. However, throwing in a word of caution he said that “Everything will depend on how people will fly between September and March and that there is no second-wave outbreak”.
Long-term earnings (three to five years) growth rate for Air Lease and Teekay Tankers is estimated at 3.1% and 3%, respectively. Meanwhile, GasLog’s earnings outshined the Zacks Consensus Estimate in two of the last four quarters (missing the mark in the other two). The average beat is 46.8%.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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Ryanair Likely to Incur Up to EUR 300 Million Loss in FY21
Per a Reuters report, European low-cost carrier Ryanair Holdings (RYAAY - Free Report) is likely to incur a net loss in the band of €200-€300 million ($226-$339 million) in fiscal year 2021 (ending Mar 31, 2021). According to the report, Ryanair’s CEO Michael O’Leary provided this bleak forecast in an interview to Spanish newspaper, Expansion.
The drab projection is primarily prompted by the coronavirus-induced lackluster air-travel demand scenario. In fact, due to the ongoing global health peril, majority of Ryanair’s fleet remains grounded. Notably, in May, this Zacks Rank #2 (Buy) Irish carrier operated only 701 scheduled flights including those for rescue operations, relief and medicine supply on behalf of various EU governments. Also, with the coronavirus pandemic disrupting air-travel demand, Ryanair reported a 99.5% year-over-year plunge in May traffic to merely 0.07 million guests. Due to travel bans and curbs, Ryanair expects its traffic numbers for June to be persistently minimal.
In a bid to adjust to this extremely low-demand scenario, Ryanair is cutting costs to drive its bottom line. The company reduced its average weekly cash burn rate to around €60 million in May from approximately €200 million in March.
Coming back to O’Leary’s comments, he stated on a more positive note that the carrier is expected to make profits again starting fiscal 2022. However, throwing in a word of caution he said that “Everything will depend on how people will fly between September and March and that there is no second-wave outbreak”.
Other Key Picks
Investors interested in the broader Zacks Transportation sector may also consider some other top-ranked stocks like Air Lease Corporation (AL - Free Report) ,Teekay Tankers Ltd. (TNK - Free Report) and GasLog LP , all currently carrying the same Zacks Rank as Ryanair. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Air Lease and Teekay Tankers is estimated at 3.1% and 3%, respectively. Meanwhile, GasLog’s earnings outshined the Zacks Consensus Estimate in two of the last four quarters (missing the mark in the other two). The average beat is 46.8%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>