Ryanair share price is facing turbulence: Buy this dip

August 15, 2023 11:03 PM AEST | By Invezz

Ryanair share price is facing turbulence: Buy this dip — Image source: Invezz

Ryanair is facing turbulence

Ryanair, the biggest European airline, is facing substantial headwinds in its key markets in Europe. For example, in Ireland, it is battling with Eamon Ryan, the Transport minister, about the recent measures to reduce the number of hours available in Dublin Airport.

The airport recently reduced its operating window from 11 pm to 7 am, a measure that will affect Ryanair and other European airlines. Ryanair has proposed a window of between 12 AM and 6 AM in a bid to save jobs.

Ryanair is also battling with German officials about the cost of operations in key airports in the country. The company argues that these measures will benefit incumbent carriers like Lufthansa. Ryanair is also suing the German government for bailing out Lufthansa during the pandemic.

Further, Ryanair is engaged in a major battle with OTA companies like Expedia and Priceline. The company is now recommending that customers should book directly in its website and apps. Ryanair has long complained that these companies offer the wrong pricing and deny it access to contact details.

Despite all these woes, Ryanair’s business in most countries, except Germany, is thriving. The most recent results showed that the company’s customers in its first quarter jumped by 11% to 50.4 million as the load factor rose to 95%.

As a result, Ryanair’s revenue jumped from 2.6 billion euros to 3.65 billion while its profit after tax surged by 290% to 663 million euros. The company also has one of the best balance sheet in the industry with over 4.8 billion euros in gross cash and minimal debt. It is also one of the best-managed airlines, not only in Europe but internationally.

Ryanair share price forecast

The daily chart shows that the Ryanair stock price has been under pressure in the past few weeks. After peaking at $112.62 on July 14th, the stock pulled back to below $100. As it dropped, the stock dropped below the 100-day and 50-day moving averages. It is also hovering at the highest point on February 9th and the 61.8% Fibonacci Retracement level.

Therefore, the shares will likely continue falling as sellers retest the 50% retracement point at $91.36. It will then resume the bullish trend as buyers target the year-to-date high of $112.62.

The post Ryanair share price is facing turbulence: Buy this dip appeared first on Invezz.

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