Ryanair among worst performing airline stocks in past year as airline strikes cautious note in annual results
Ryanair is among the worst-performing airline stocks over the past year that has been marked by union disputes and rising costs.
Analysis by Thomson Reuters shows that the once buoyant stock has fallen to the back of the pack along with Air France-KLM, United Continental and SouthWest in terms of positive share price change.
Air France’s place at the bottom of the pile is not surprising given the airline’s troubles over the resignation of its CEO Jean-Marc Janaillac and ongoing strikes.
Ryanair today unveiled a good set of financial results, with profit after tax rising by 10 per cent to €1.5bn (£1.3bn) for the year, and revenue rising eight per cent to €7.2bn.
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Passenger numbers were also up nine per cent to £130m, with a sky-high load factor – which assesses how efficiently an airline fills its planes – at 95 per cent.
However, it warned its earnings will fall back in the next year due to higher costs and flat fares. It also gave more insight into its Brexit preparations, saying it remains concerned at the “likely impact” of a hard Brexit. It is planning for this, saying that in such circumstances its UK shareholders will be treated as non-EU, which could affect its licensing and flight rights.
Russ Mould, investment director at AJ Bell, said shareholders seemed to be taking the cautious tone struck by the low-cost airline “in their stride”, citing a climb in shares this morning.
“This may be a reflection of the company management’s long-term track record of getting it right and providing customers with what they want, hopes that the spat with the unions is over and that further consolidation in the airline business will help keep supply and demand in balance,” he said.
“In addition, the shares have already done poorly over the last year, thanks in part to the dispute with the unions and the prospect of rising costs.
“Investors must now make sure that the tailwinds which have done so much to lift the airlines sector in the UK, Europe and around the world do not become the sort of headwinds which could make for bumpier operating and share price performance going forwards.”
Meanwhile, Hungarian airline Wizz Air tops the charts with a 61 per cent jump in share price over the year, followed by Lufthansa, China Southern and SAS.
Worst and best performing airline stocks
Airline
Share price change over one year
Airline
Share price change over five years
Wizz Air
Up 61 per cent
American Airlines
Up 647.9 per cent
Lufthansa
Up 50.9 per cent
Dart
Up 324.5 per cent
China Southern
Up 46.7 per cent
Qantas
Up 280.7 per cent
SAS
Up 41.4 per cent
Southwest
Up 265.5 per cent
China Eastern Airlines
Up 39 per cent
Delta
Up 179.7 per cent
Easyjet
Up 37.9 per cent
International Consolidated Airlines
Up 144.1 per cent
Dart
Up 33.1 per cent
Wizz Air
Up 142.1 per cent
Air China
Up 31.6 per cent
Ryanair
Up 128.9 per cent
Qantas
Up 28.7 per cent
China Eastern Airlines
Up 121.9 per cent
Japan Airlines
Up 22 per cent
China Southern
Up 114.1 per cent
Singapore Airlines
Up 18.9 per cent
United Continental
Up 99.1 per cent
Norwegian Air Shuttle
Up 15.4 per cent
SAS
Up 56.9 per cent
International Consolidated Airlines
Up 14.9 per cent
Lufthansa
Up 53.8 per cent
Cathay Pacific
Up 11.6 per cent
Easyjet
Up 43.3 per cent
Delta
Up 9.2 per cent
Air China
Up 41.9 per cent
Flybe
Up 6.8 per cent
Singapore Airlines
Up 8.4 per cent
American Airlines
Down 6.1 per cent
Air France-KLM
Down 2.7 per cent
Ryanair
Down 7.3 per cent
Cathay Pacific
Down 8 per cent
Southwest
Down 11.4 per cent
Norwegian Air Shuttle
Down 13.3 per cent
United Continental
Down 13.3 per cent
Japan Airlines
Down 21.9 per cent
Air France-KLM
Down 22.7 per cent
Flybe
Down 27.4 per cent
Source: Thomson Reuters Datastream, to 21 May 2018
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