- Ryanair to start operating 1,000 flights in July, subject to lifting of Government and EU border and travel re
- The company has been operating around 30 flights per day in the past two months
- Stock price rebounds 2.5% higher, but remain close to the 5-year low near 8.00
Shares of Ryanair (LON:RYA) closed the day 2.5% higher after the embattled airliner said it aims to resume 40% of its planned July flights in a bid to stop the financial bleeding.
Fundamental analysis: Ryanair aims for 1,000 flights
In a statement issued today, Ryanair said it aims to ramp up its flight schedule as of July 1, subject to the lifting of restrictions by national and EU authorities. The Ireland-based airline is looking to start operating around 1,000 flights, which is around 90% of the pre-coronavirus route network.
“After 4 months, it is time to get Europe flying again so we can reunite friends and families, allow people to return to work, and restart Europe’s tourism industry, which provides so many millions of jobs,” said CEO Eddie Wilson.
Ryanair, Europe’s largest low-cost airline company, is also introducing a wide range of new measures, including the mandatory wearing of face masks for its crew and passengers as well as temperature checks. Moreover, all onboard transactions will be cashless, while passengers will have to request toilet access.
“Ryanair will work closely with public health authorities to ensure that these flights comply, where possible, with effective measures to limit the spread of Covid-19. As already shown in Asia, temperature checks and face masks/coverings are the most effective way to achieve this on short haul (1 hour) within Europe’s single market,” Wilson added.
The airline has been operating around 30 flights between Ireland, the UK and Europe since the lockdown measures have been introduced across Europe.
Technical analysis: The dead cat bounce
Ryanair stock price has rebounded 2.5% today after initially printing a 1-month low earlier in the morning. The company’s decision to significantly increase the number of flights in July is likely to provide the light at the end of the tunnel for its embattled business.
The stock price printed a 5-year low around the 8.00 handle in March, while it is now attempting to create a base around the 9.00 mark and start moving higher in a more sustainable fashion.
If the bullish momentum persists, the buyers will look for a move towards 10.00, which is the previous support that will now act as a resistance.
Shares of Ryanair jumped 2.5% today after Europe’s largest low-cost airline said it plans to start operating around 1,000 flights across the UK and Europe as of July 1.