Ryanair share price gains eroded after pilots vote for strike action
The low-cost airline saw the gains it made early in Thursday’s session evaporate after its pilots voted for to go on strike over pay and a host of other issues.
Ryanair saw its share price climb close to 2% on Thursday morning only to have its early gains eroded after the airline’s pilots said they plan to go on strike over pay and working conditions.
The British Airline Pilots Association (Balpa) announced two planned strikes between the 22-23 August, with a second walkout scheduled to take place over the 2-4 September.
‘Our claim includes many issues including pensions; loss-of-licence insurance; maternity benefits; allowances; and a fair, transparent, and consistent pay structure,’ Balpa said in a statement.
‘We have made no progress with Ryanair management on any of those areas at all, seemingly because Ryanair management cannot understand how to go about working with us constructively, or how to negotiate.’
Ryanair’s share price sits at €9.32, down 1%, as of 14:35 GMT on Thursday.
Practise trading Ryanair and other European airline stocks with an IG demo account.
Balpa has no mandate to disrupt holidaymakers, Ryanair says
Balpa claims that 80% of pilots voted in favour of strike action in late August and early September, based on a 72% turnout – meaning 56% of union members approved the walkouts.
Ryanair, however, disputes those figures, claiming that less than 30% of UK-based pilots supported the motion when accounting for non-members.
‘Balpa have no mandate to disrupt our customers holidays and flights, particularly at a time when UK pilots are facing job losses due to the Boeing Max delivery delays, and the threat of a no-deal Brexit on 31 October,’ a spokesperson said.
In response, Balpa general secretary Brian Strutton said that union members do not wish to spoil holidaymakers’ plans, but Ryanair has left pilots no other choice, though they hope to resolve the dispute and avoid strike action.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
