The Ryanair share price jumped by more than 1.6% after the company expressed optimism that its business will rebound later this year. The RYA stock rose to 17.35p, which was the highest level since Tuesday last week.
Ryanair earnings: Ryanair, the giant discount airline, reported a sharp decline in annual revenue because of the pandemic. The company said that the number of annual passengers dropped by 81% as most countries shut their airspace to deal with the pandemic. The company said that it made a loss of more than 815 million euros. This was a better performance than the median estimate of a 933 million euro loss.
However, the company said that it was optimistic about an imminent recovery as countries start to reopen. In an interview with CNBC, the firm’s CEO said that the firm made almost 5 million bookings in the first week of April. This grew to 1.5 million bookings last week, which is a sign that the industry is recovering. The firm expects its traffic in the current 2022 financial year will be at the lower range of between 80m and 120m it had guided before. He said:
“We should be careful though, out into the winter of 21 and certainly into the summer 22, because as Europe recovers from Covid … there is no doubt in mind that there will be about 20% less capacity out there.”
Ryanair share price forecast
The daily chart below shows that the Ryanair share price is trading at 16.93, which is an important level since it was the highest level on June 10. The stock seems to be forming a flat-top pattern whose resistance is at 17.60p. This pattern can also be said to be an ascending triangle, which is usually a sign of a bullish continuation.
It is also being supported by the 25-day and 50-day moving averages (MA), which is a positive sign. Therefore, we can’t rule out a situation where the stock rises as the vaccination rates increase. On the flip side, a drop below the dynamic support at the 50-day EMA will invalidate this trend.