Ryanair drops 7pc in rumour turbulence
SHARES in Ryanair fell by as much as 7pc, as the market reeled from widespread rumours about impending bad news from the company.
Ryanair is due to report its third-quarter figures on February 4, and is also expected to update the market on the full-year outlook for 2008 and possibly 2009.
The airline's figures and comments are expected to be closely scrutinised given the prevailing economic uncertainty in core markets like the UK and Ireland, as well as stubbornly high oil prices.
"From about lunchtime, there were all these rumours flying around saying Ryanair was preparing to come out with lower estimates for 2008, or even a profit warning for 2009, and it sent the stock into a spiral," said one source.
Ryanair's team fielded calls from parties in the market, but were unable to offer much reassurance since the company is in a closed period until the results announcement.
Experienced Ryanair watchers, however, said there didn't appear to be much substance to the rumours.
"I wouldn't think there's much chance of anything happening to 2008, because all the indication up to now was that they were comfortable with market expectations," said one.
The airline's spokesman cited a policy of not commenting "on speculation or rumours".
- Laura Noonan
