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Why Ryanair (RYAAY) Stock Gained 2.9% in Wednesday's Trading

Zacks Equity Research
·2-min read

Shares of Ryanair Holdings RYAAY had a good run on the bourses on Aug 3, gaining 2.9% from Aug 2’s closing. As a result of this uptick, the stock closed yesterday’s trading at $73.60.

Why the Uptick?

The highly impressive July traffic numbers led to the stock price gain on Aug 3. The carrier flew 16.8 million passengers in the month, the highest ever traffic volume at RYAAY in the said month. Last July, only 9.3 million passengers were transported by RYAAY.

Load factor (% of seats filled by passengers) increased to 96% from 80% in July 2021. The number of passengers attracted by RYAAY in July 2022 was 14.2% higher than the 14.8 million passengers flown in July 2019 (pre-coronavirus era). July performance was recorded despite some of Ryanair’s cabin crew staff in certain European countries being on strike. RYAAY operated more than 92,000 flights in July.

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Ryanair has been benefiting from improved traffic owing to upbeat air-travel demand for quite some time as COVID-19 restrictions are relaxed. In first-quarter fiscal 2023 (ended Jun 30, 2022), RYAAY’s revenues surged 602% year over year to €2.6 billion on the back of buoyant traffic. Scheduled revenues in the fiscal first quarter increased 720% to €1.58 billion.

The number of passengers who flew on RYAAY planes were 45.5 million in the quarter, up 461% year over year. The traffic was 9% more than the pre-COVID levels. Load factor in first-quarter fiscal 2023 was 92% compared with 73% a year ago.

Zacks Rank

Ryanair currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are Star Bulk Carriers SBLK and C.H. Robinson Worldwide CHRW , each sporting a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Star Bulk'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 27% in a year's time. Improvement in economic activities is aiding the SBLK stock.


C.H. Robinson has an expected earnings growth rate of 15.9% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 24.2%, on average.

C.H. Robinson has a long-term earnings growth rate of 8.7%. Shares of CHRW have gained 21% over the past year.


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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
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Zacks Investment Research