Ryanair Share Price
The Ryanair air share price (LON:RYA), while it has had peaks and troughs, has largely traded sideways in 2021. There has been optimism around the potential for flights to move towards pre-pandemic levels this year, however, there has equally been news to dampen spirits in the airline industry.
Year-to-date, the Ryanair share price is up by 5.43%, and at €16.20, it is back above pre-pandemic levels. The pandemic has been kinder to budget airlines such as Ryanair when compared to larger companies like IAG. Investors will now be focusing on whether the airline can continue growing for the remainder of the year and into 2022. Ryanair gave a recent optimistic update while it also divulged the conclusion of its talks with Boeing.
Passenger Levels
Ryanair’s expectations are that more passengers will fly in the autumn than in the summer. The airline increased its targets for the current quarter as it saw a “dramatic” recovery in traffic. Such is the increase in volumes of flyers that Ryanair now believes it could surpass pre-pandemic levels next year.
Ryanair confirmed that it will fly around 10.5m passengers each month up to November, an improvement its initial target by 5%.
Michael O’Leary believes that by October flight capacity will be close to normal levels and that they would be exceed by summer 2022.
It must be stated that these predictions depend on the outlook of the world economy in relation to the Delta variant. While Ryanair’s update gives reason for investors to be optimistic, recent events make it clear that no forecasts can be certain.
Talks with Boeing
Ryanair has ended discussions with Boeing on an order for Boeing 737 jets after to failing to reach an agreement on pricing. The airline is already the primary customer for 737 jets, having made 210 from orders of one if its models.
However, O’Leary has since said that any chance of a deal before the end of the year is unlikely.
“We are disappointed we couldn’t reach agreement,” O’Leary said in a statement.
“However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.”
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