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Ryanair Holdings shares rose on Monday as investors looked past a pessimistic outlook that will see the budget airline recording a worse loss for the fiscal year than analysts anticipated.
Ryanair
RYA,
RYAAY,
shares rose 2% as the airline said it reported a €225 million profit in the fiscal second quarter but that it will lose between €100 million and €200 million for the year. Ryanair had previously guided for a small loss, which analysts had interpreted to mean €64 million of red ink.
Analysts at Stifel point out that revenue was 42% below pre-crisis levels but passenger numbers are only down 24%, showing the airline’s willingness to build market share. The Stifel analysts estimate a doubling of profits and free cash flow by fiscal 2025 despite a drop in sustainable yields.
Elsewhere in Europe, Credit Suisse
CSGN,
CS,
led a rally in the banking sector, gaining 5%. The troubled Swiss bank, hit by losses from Archegos as well as its involvement in a corrupt loan to Mozambique, the demise of Greensill and a spying affair, is due to hold a strategy day on Thursday.
Credit Suisse shares have dropped 12% this year.
Barclays
BARC,
saw modest losses after announcing the resignation of its chief executive, Jes Staley, over his ties to sex felon Jeffrey Epstein.
The Stoxx Europe 600
SXXP,
rose 0.5% to 477.98.
Of the major regional indexes, the German DAX
DAX,
gained 0.6%, the French CAC 40
PX1,
increased 0.7% and the U.K. FTSE 100
UKX,
increased 0.4%.
