Ryanair shares slump after plans to cut 3,000 jobs amid Covid-19 crisis
The low-cost airline carrier saw its shares take a tumble after announcing plans to cut 3000 jobs due to the economic fallout from the Covid-19 crisis.
Ryanair saw its shares fall 4% on Friday, after announcing plans to cut 3000 jobs due to the economic impact of the Covid-19 crisis.
The low-cost airline carrier also warned investors that it could take up to two years for the company to fully recover from the impact of the outbreak and see its performance return to pre-crisis levels.
‘Ryanair now expects the recovery of passenger demand and pricing (to 2019 levels) will take at least two years, until summer 2022 at the earliest,’ the company said.
‘Ryanair airlines will shortly notify their trade unions about its restructuring and job loss programme, which will commence from July 2020.’
Ryanair is trading at €9.82 per share as of 14:15 (GMT) on Friday.
Ryanair dramatically reduces flights in Q2
The low-cost airline told investors in its Covid-19 market update that it will operate less than 1% of its scheduled flights in April, May and June.
Ryanair also said that it expects to carry no more than half of its traffic target of 44.6 million passengers over the second quarter (Q2) 2020.
‘Ryanair is now reviewing its growth plans, and aircraft orders,’ the company said. ‘We are in active negotiations with both Boeing, and Laudamotion’s A320 lessors to cut the number of planned aircraft deliveries over the next 24 months, which could reduce our capex commitments, to more accurately reflect a slower and more distorted EU air travel market in a post Covid-19 world.’
How much does it cost to buy UK shares with IG?
There are three ways to ‘buy’ UK shares with IG: spread betting, trading CFDs or buying physical shares. The cost will depend on which method you choose. The table below illustrates how the costs to get exposure to £10,000 of Lloyds stock, which is equivalent to 16,000 shares (quoted at 62.5p a share).
Remember, spread bets and CFDs are derivatives, which come with higher risk and reward than investing.
Cost to get exposure to Lloyds stock
Spread betting | CFD trading | Share dealing | |
Action | Buy £160 per point | Buy 16,000 share CFDs | Buy 16,000 shares |
Capital required to open | £2000 | £2000 | £10,000 |
Total fees | £20.88 | £20.88 | £16 |
Note: Amounts do not include overnight funding charges and taxes. Spread bets are not subject to tax. CFDs are free from stamp duty, but subject to capital gains tax. Share dealing is subject to both stamp duty and capital gains tax.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.