Ryanair: turbulent times for the airline
While the fundamental outlook for budget airline Ryanair might be improving, the chart still looks quite bearish, even with the recent bounce from the lows.
It has been a tough few months for airlines, and Ryanair is no exception. The profit warning in mid-January sparked off another drop in the share price, with the warning of lower fares for the winter hurting sentiment. In addition, the firm is warning of overcapacity on short-haul routes, a sign that prices are unlikely to rise soon.
Falling oil prices will provide a near-term boost, and an improved economic situation in Europe might also alleviate some of the overcapacity. At around 11 times forward earnings, the shares are at their cheapest level in almost three years, though the technical picture remains discouraging.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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 full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
