Ryanair stock price opens higher as the carrier refuses to cancel UK flights

Shares of Ryanair (LON:RYA) have opened the new trading week higher after gaining nearly 15% last week. In the meantime, Ryanair’s boss O’Leary said his company will not cancel flights from and to the UK, calling the new quarantine rules “rubbish”. 

Fundamental analysis: Ryanair considers legal action, refuses to cancel UK flights

Ryanair will not cancel flights from and to the UK, its boss Michael O’Leary said. The UK government introduced new rules for international travellers today, requiring all arrivals to self-isolate for 14 days. 

When asked if the carrier will cancel its summer flights due to the introduction of new rules, O’Leary said:

“No, because the flights are full outbound of the UK. British people are ignoring this quarantine, they know it’s rubbish. Ryanair is operating a thousand daily flights to points all over Portugal, Spain, Italy, Greece from the 1st of July, the 2nd, the 3rd and every day after that.

On Friday, British Airways warned that it will launch a legal action against the UK government due to the new quarantine plans. The airline sent a “pre-action protocol letter”, which can then be followed with legal action.

“We think it is irrational, we think it is disproportionate and we are giving consideration to a legal challenge to this legislation,” IAG, parent company of the British Airways, said in a statement. 

The Dublin-based low-cost carrier said it will support the legal action launched by the IAG. 

“Ryanair will support any legal action launched by IAG against this ineffective quarantine,” the carrier said in a brief statement. 

Ryanair dismissed 250 employees at its head office and around 3,000 cabin crew and pilots combined as a result of the COVID-19 outbreak.

Technical analysis: Shares hit a 3-month high

Ryanair stock price is trading around 1.5% higher to open the new week. Last week, shares of the carrier gained nearly 15% to hit the highest levels since late February. 

The buyers are now likely to target the 13.80 mark, which is key short-term resistance. This area hosts the 200-DMA and the horizontal resistance, and it is also a measured profit-taking level for the double bottom formation. 

The bullish reversal chart pattern was activated once the price action broke above the neckline near the 11.00 handle. On the downside, the price action is now supported by the confluence of support levels near the 12.00 mark. 

Summary

Following a week of huge gains in the stock market, shares of Ryanair are trading around 1.5% higher to open the new trading week. The Irish low-cost carrier will not cancel any flights to and from the UK, despite the new quarantine rules that are introduced by the government.