Ryanair (LON: 0RYA) share price tanked on Monday as the firm released its earnings report. The investors shrugged off the strong quarterly results, which showed an increase in revenue and net profit. Consequently, the stock dipped 9.02% on NASDAQ (LON: RYAAY) and 3.98% on London Stock Exchange (LON: 0RYA).
This marks the lowest level for Ryanair shares on LSE since June 27. Nevertheless, the shares still remain 55.45% above their September 2022 lows and are also 24.5% up since the start of 2023.
On Monday, Ryanair plc released its earnings report for the first quarter of fiscal year 2024. The firm posted a net profit of €662.9 million, which was above analyst expectations of €506 million. The ultra-low-cost carrier also beat its revenue estimate of €2.6 billion by posting revenue of €3.65 billion.
However, Ryanair share price still tumbled on Monday due to the lower-than-expected traffic guidance for the rest of the year. While there was an 11% increase in traffic on a YoY basis, the outlook for the rest of the year is likely to be affected due to high-interest rates and the delay in Boeing deliveries.
Since the start of 2023, there has been a strong recovery in airline stocks. LON: 0RYA chart depicts a steady increase in the past few months. This week’s pullback can be attributed to the weaker outlook fueled by the delay in deliveries and high interest rates in Europe.
Currently, the shares are trading at 1360p. In case of a deeper pullback, there is strong support around the 1200p level. A break of this support level would make Ryanair share price forecast very bearish. The upcoming FOMC meeting in the US may also affect the price action in the coming days.
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This post was last modified on Jul 25, 2023, 08:11 BST 08:11