Why are Ryanair Shares Not Lower?

THE WEEK: Morningstar columnist Rodney Hobson fails to comprehend why troubled airlines Ryainair and British Airwarys did not see their shares tumble from the sky

Rodney Hobson 29 September, 2017 | 12:59PM

Ryanair has been beset with difficulties recently

Whisper it, but I actually have some sympathy for the people who run international airlines. Perhaps it’s because I no longer do much flying. But it has always seemed to me that it must be a nightmare trying to keep aircraft and air crew in the right places when so much disruption can be caused by one component breaking down or one pilot being taken ill.

All the more reason, then, not to suffer from self-inflicted wounds. I can’t understand why something as heavy as a jumbo jet can be taken 30,000 feet up in the air, but I’m even more baffled why shares in Ryanair (RYA) and International Consolidated Airlines (IAG), owner of British Airways, didn’t tumble to earth when those airlines were faced with horrendous disruption.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
International Consolidated Airlines Group SA160.75 GBX4.25
Ryanair Holdings PLC15.49 EUR1.77

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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