Ryanair: shares slide after cautious outlook

(CercleFinance.com) - Ryanair on Monday announced better-than-expected third-quarter results, along with a surprise share buyback program, although the share is currently down due to the airline's cautious outlook.


Ryanair, whose traffic figures grew 6% to 30.4 million passengers in the past quarter, said pre-tax profit rose to 106 million euros in the three months to 31 December 2017, up 12% from 95 million euros a year ago.

Europe's leading budget airline has approved a 750 million euro share buyback of ordinary shares, which will start in February and which is expected to be completed by the end of October.

However, Ryanair said that its outlook for the remainder of fiscal year 2018 was "cautious," with guidance depending heavily on the absence of union disruptions, unforeseen security events and close-in Easter bookings.

Analysts at Oddo said this morning that they remain positive on the stock, saying the upbeat environment for capacity (as a result of the concentration movement in Europe) should enable Ryanair to offset inflation in personnel costs.

This morning Ryanair shares were down 3.2% at 15.6 euros. Ryanair is still up 3.2% since the beginning of the year.

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