Ryanair stock in severe difficulty after the revision of the guidance on the 2018-2019 profit. The collapse began this morning in London - where shares travel down by 12,2% - and continued in the afternoon on the Nasdaq. One hour after the opening of the US lists, the share lost 15,4% to 81,21 dollars.
Sales are driven by the downward revision of net profit estimates, due to the strikes this summer in Europe – the last of which was held on 28 September – which, in addition to causing profound inconvenience to travellers, have heavily impacted the results of the company led by Michael O'Leary.
In detail, Ryanair expects to achieve a net profit between 2018 and 2019 billion euros in the 1,10-1,20 financial year (which ends at the end of March). The previous estimate spoke instead of 1,25-1,35 billion euros. Among other things, it should be noted that the 2017-2018 financial year closed with a net profit of 1,45 billion euros.
“We successfully managed 5 strikes by 25% of our Irish pilots this summer, while 2 recent coordinated strikes by cabin crew and pilots in 5 EU countries impacted our passenger traffic with flight cancellations , closing of reservations and rates” explained the ceo Michael O'Leary. “While we managed these days of strike by managing to operate over 90% of our flight schedule, they impacted customer confidence and bookings for the third quarter.” Ryanair, it adds, "cannot rule out further strikes in the third quarter, which may prompt a further lowering of its full-year guidance and may require further scaling back of winter capacity."
