A Ryanair (NASDAQ:RYAAY) forecast 2020 update has RYAAY stock heading higher on Friday.
The Ryanair forecast 2020 news notes that the company saw stronger travel during the holiday period than what it was expecting. This includes travel for Christmas and New Year. It says this resulted in higher close-in bookings at better than yields than what it was looking for.
According to the company, it is updating its guidance thanks to its strong performance during the holidays. This has it now expecting Full Year PAT to come in between €950 million and €1.05 billion. The previous guidance range was €800 million to €900 million.
It isn’t just a strong holiday quarter that is helping out RYAAY stock. The company also points out that progress for the fourth quarter is already above expectations. That covers forward booking from January to April sitting 1% higher than they were during the same period of the year prior. It expects this to result in group traffic of 154 million, instead of the previous estimate of 153 million.
Not everything in the Ryanair forecast 2020 update is good news. The airline company says that its Laudamotion subsidiary in Austria is still struggling to perform well. It attributes this to tough competition from rivals in Germany and Austria. As a result, the company is expecting Laudamotion’s net loss for the fiscal year to widen from €80 million to roughly €90 million.
RYAAY stock was up 6.51% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.