Ryanair tipped to escape Brexit damage to air travel demand
Continuing Brexit uncertainty will have hit demand for outbound air travel as the summer season gets under way, according to Davy Stockbrokers.
And it said that while Easyjet remains vulnerable to rising commodity prices and its UK concentration, Ryanair remains in a strong position. Davy also expects Ryanair to announce a fresh share buyback, possibly of about €750m. Ryanair releases full-year results on May 20.
Davy added that continuing Brexit turmoil has limited UK consumer demand, while rising fuel costs are still a feature of the aviation landscape. The ongoing grounding of Boeing's Max jets is also an issue, it added.
"We expect that, while largely in the price and despite a tightening supply environment, the combination of the above will lead to cautious outlook statements," said the stockbroker. "Close-in peak summer and winter fares could lead to upside surprises as we progress through the year."
Davy expects Ryanair to deliver a full-year profit for the financial year that ended in March at the lower end of a €1bn to €1.1bn range. It said Ryanair's 2020 outlook will probably be cautious, and thinks it will pencil in profits of between €900m and €1bn for the year.