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 share price down 3% after profit hits four-year low

The low-cost airline reported its weakest annual profit in four years on Monday sending its share price tumbling.

Ryanair saw its share price take a tumble on Monday morning after it announced a disappointing set of full-year results, with profit hitting a four-year low and earnings expected to fall even further as European airlines fare wars rage on.

The low-cost airline’s share price fell more than 5% on Monday morning to €10.18, down from €10.76, but has since recovered slightly, trading at €10.40 levels as of 12:15pm GMT.

Ryanair reported full-year 2019 profit of €1.02bn, representing a 29% decline compared with the previous year, driven by lower fares.

Ryanair results: key figures

Revenues rose 6% to €7.6bn due to 7% higher traffic, a 6% cut in average fares to €37, while Ryanair Labs continues to stimulate ancillary sales growth with spend per guest up 11% to over €17.

Despite its disappointing set of annual results, Ryanair approved a €700m share buyback which will commence later this week and run over the next nine to 12 months.

‘We expect to split this approximately €500 million/€200 million between ADR’s and ordinary shares, although the Board has discretion to revise this allocation,’ the company said.

This latest buyback will bring to almost €7 billion of the funds returned to shareholders since 2008.

Ryanair looks to beat rivals in war of attrition

Ryanair has the lowest unit costs of any EU airline, and the cost gap with EU competitors continues to widen.

As weaker European airlines are sold or fail, airports are competing to attract Ryanair’s efficient, high load factor, traffic growth, with its airport costs coming in 35% lower than its nearest competitor. the company said.

‘Frankly, if we are in a period where there are going to be attritional fare wars... profits will suffer for a year or two and I think that is what shareholders should expect,” Ryanair CEO Michael O’Leary said in a video presentation.

‘However, it is clear in my mind that within the next four of five years we will see the emergence of four or five large European airline groups... with much more capacity discipline ...and some upward pressure on pricing,’ he added.

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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.