RYA went under 12€ today15 Jun 2022 17:44
Warning from Zacks Equity Research:
Shares of Ryanair Holdings RYAAY have declined 25.4% year to date, underperforming its industry’s 16.2% fall.
The stock may face further hiccups as RYAAY’s cabin crew may possibly call a strike in many European nations during the summer season. Per a Bloomberg report, pay-related talks with two Spanish unions (SITCPLA and USO) failed.
Following Ryanair's walkout from negotiations, the unions accused RYAAY, currently carrying a Zacks Rank #5 (Strong Sell), of acting in bad faith. The unions intend to return for further negotiations.
A representative of the SITCPLA labor group said, “We’re coordinating our actions with European counterparts.” The two unions apart, workers’ organizations in countries like Belgium, France, Italy and Portugal are also in favor of taking drastic actions if Ryanair does not agree to resume a dialogue.
As a matter of fact, if this impasse continues and the strike threat materializes, Ryanair’s plans to generate substantial traffic and revenues during the usually busy summer season may take a hit.
Last month, RYAAY’s management had projected the load factor (percentage of seats occupied by passengers) to reach the pre-pandemic levels at 94-95% in June-August. RYAAY CEO Michael O'Leary had said at that time, "Bookings over the last number of weeks have continued to strengthen – both the numbers are strengthening and average fares being paid through the summer are rising."
It will be interesting to see if the above labor problem hampers these plans.
[My own opinion - RYA is a serious risk to your wealth. Brokers have an average SELL rating on them. Wizz Air are actually beating them on price and service now. Much better shares (e.g. BOOHOO) to put your money into]. Strong Sell. Will probably fall to 8€.]