Ryanair stock price pops as airliner plans to resume 40% of July flights

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. 

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. 

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. 

Summary

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.