CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Ryanair shares set to struggle this winter amid rising Covid-19 cases

The low-cost airline is likely to see its share price struggle this winter as rising coronavirus cases threaten tighter travel restrictions, with the company seeing passenger numbers drop 64% in September.

  • Ryanair shares likely to struggle this winter amid rising Covid-19 cases
  • Passenger numbers at the budget airline set to fall after 64% decline in September
  • Ryanair warns of large job losses due to ‘shambolic’ UK coronavirus policy
  • FTSE 100 trades flat on uncertain US stimulus hopes as markets await Trump health update

Ryanair shares are likely to come under renewed pressure during the winter months, with the low-cost airline reporting a 64% decline in passenger numbers in September as a result of rising Covid-19 cases that led to tighter travel restrictions.

In a statement earlier this month, Ryanair said that just 5.1 million people flew with them last month, compared to the 14.1 million that took to the skies with the budget airline over the same period last year.

Ryanair also said it operated at around 53% of its normal September schedule with a 71% load factor, which measures passengers per seat, the company said.

As it stands, the low-cost airline’s annual passenger numbers are down 47% to 79.9 million, with other European airlines all seeing suppressed demand due to the pandemic, with the industry forecasting that demand will not return to pre-crisis levels until at least 2023.

Ryanair closed 2% higher on Monday, with the stock down 22% year-to-date.

Ryanair warns of job losses due to ‘shambolic’ UK Covid-19 policy

Ryanair CEO Michael O’Leary has urged the UK government to reconsider their Covid-19 travel restrictions or face massive job losses across the British aviation and tourism sectors.

‘We want to keep our pilots and cabin crew employed and paid and we are going to have to have huge government assistance for that, otherwise I'm afraid they're all going to go on unpaid leave for the winter,’ O’Leary said.

‘The British government doesn't have any competence, never mind confidence,’ he told ITV News in an interview.

‘You know the example that we point to all the time is that the Italians and the Germans have been allowing flights, intra-EU air flights, since the first of July and have managed to keep their Covid case rates down around 20 per 100,000,’ he added.

FTSE 100: technical analysis

The FTSE 100 has rallied into the key 5975 resistance level in early trade, with the index looking to resume Fridays positivity, according to Josh Mahony, senior market analyst at IG.

‘However, with price turning lower from that resistance level there is good chance we will see the recent consolidation continue once again,’ he said. ‘From a wider perspective, we have been seeing a trend of lower highs, and thus the recent rebound look like a retracement of the decline from 6127.’

‘As such, another period of downside looks likely over the short-term, with a rise through 5975 required to bring about expectations of further short-term upside,’ Mahony added. ‘Irrespective of whether that happens or not, the wider bearish trend remains in play unless the 6127 swing-low is broken.’

How to trade stocks with IG

Looking to trade Ryanair and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Ryanair Holdings PLC’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG 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.
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