Ryanair rallies after profit warning
Ryanair shares staged a partial recovery yesterday, rising nearly 5pc, after being mauled on Monday when it issued its second profit warning in two months.
The stock had plunged nearly 13pc on Monday after it said that profits for the current financial year are likely to be as much as 20pc lower than anticipated due to the lower fares it is offering in order to lure passengers.
The rise in its shares yesterday came as some analysts encouraged investors to buy into the stock.
Meanwhile, the UK's Competition Commission also issued a draft order that could be published if Ryanair loses its appeal ordering it to reduce its stake in Aer Lingus from close to 30pc to just 5pc.
In its draft order, the watchdog said that a trustee that will oversee the sale of the bulk of Ryanair's stake in Aer Lingus will have just 10 days after being appointed to recommend whether a sale of the holding should be made to an upfront buyer or via a stock market placement.
The commission has begun a public consultation on the draft order and said that issuing the order isn't an attempt to pre-empt Ryanair's appeal to the Competition Appeal Tribunal, but only to "ensure the Competition Commission is ready to implement the remedy if the tribunal upholds the CC decision".