Ryanair and low-cost airline rivals likely to cut prices
Ryanair and its low-cost rivals are likely to have to cut ticket prices to stimulate growth, according to stockbrokers Davy. A new report by analyst Ross Harvey points out that earnings downgrades have cost European airlines 20% of their value in the last 2 months. He notes that low-cost airlines such as Ryanair are continuing to see strong growth and are selling a greater proportion of their seats. However, he says that this now requires the “greatest degree of price stimulation” in more than 2 years. Unit revenues were down in Q2 of the year and, while it is improving, peak summer pricing is weak. He says that Ryanair carries the best cost momentum going into Q2 of 2016, which supports the airline’s own predictions for its full-year performance. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-08-23/unaligned/ryanair-and-low-cost-airline-rivals-likely-to-cut-prices
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Ryanair and low-cost airline rivals likely to cut prices
Ryanair and its low-cost rivals are likely to have to cut ticket prices to stimulate growth, according to stockbrokers Davy. A new report by analyst Ross Harvey points out that earnings downgrades have cost European airlines 20% of their value in the last 2 months. He notes that low-cost airlines such as Ryanair are continuing to see strong growth and are selling a greater proportion of their seats. However, he says that this now requires the “greatest degree of price stimulation” in more than 2 years. Unit revenues were down in Q2 of the year and, while it is improving, peak summer pricing is weak. He says that Ryanair carries the best cost momentum going into Q2 of 2016, which supports the airline’s own predictions for its full-year performance. <br/>
