LONDON BRIEFING: Ryanair and Wizz see passenger rebound as rules eased

(Alliance News) - Ryanair and Wizz Air on Monday both reported a jump in passengers flown in ...

Alliance News 4 October, 2021 | 8:04AM
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(Alliance News) - Ryanair and Wizz Air on Monday both reported a jump in passengers flown in September amid a brighter outlook for the travel industry, with UK rules relaxed and simplified from Monday.

Ryanair saw traffic more than double to 10.6 million in September from 5.2 million a year ago, while load factor improved to 81% from 71%. September's figure slipped from August's 11.1 million passengers, however.

Wizz Air, meanwhile, flew 3.0 million passengers in September, up 91% on a year ago, with an improved load factor of 78.4% versus 64.6%.

The airlines' updates come the same day as the UK's traffic light travel system involving green, amber and red lists were scrapped to make travel "easier and cheaper".

Locations are now categorised as either on the red list or not - and there are UK press reports that the number of countries on the red list will be slashed to nine from 54 later in the week, with destinations such as Brazil, Mexico and South Africa expected to be opened up to quarantine-free travel.

Fully vaccinated residents – and unvaccinated under 18s – from more than 50 countries and territories can now enter the UK without needing to complete a pre-departure lateral flow test, take a day-eight post-arrival PCR test costing around GBP65, or self-isolate at home, with just a single day-two post-arrival test needed.

People arriving from a red tier destination will still be required to spend 11 nights at a quarantine hotel, costing GBP2,285 for solo travellers.

Ryanair shares were up 1.2%, while Wizz Air was up 0.8% early Monday.

Here is what you need to know at the London market open:

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MARKETS

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FTSE 100: down 0.2% at 7,013.07

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Hang Seng: down 2.2% at 24,046.01

Nikkei 225: closed down 1.1% at 28,444.89

DJIA: closed up 482.54 points, or 1.4%, at 34,326.46

S&P 500: closed up 1.2% at 4,357.04

Nasdaq Composite: closed up 0.8% at 14,566.70

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EUR: up at USD1.1608 (USD1.1592)

GBP: unchanged at USD1.3553 (USD1.3550)

USD: unchanged at JPY111.04 (JPY111.06)

GOLD: soft at USD1,757.54 per ounce (USD1,757.98)

OIL (Brent): up at USD78.92 a barrel (USD78.44)

(changes since previous London equities close)

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ECONOMICS AND GENERAL

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Monday's Key Economic Events still to come

China National Day Golden Week holiday continues. Shanghai market closed, HK open.

OPEC and non-OPEC Ministerial Meeting via videoconference

UK Chancellor Rishi Sunak addresses Conservative Party conference in Manchester

1100 CEST EU quarterly balance of payments

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UK Chancellor Rishi Sunak will commit more than GBP500 million in fresh funding to help people back into work as he seeks to stem the continuing turbulence of the coronavirus pandemic. Sunak is shifting the focus on to getting people into new or better jobs as the government comes under sustained pressure over a major squeeze on living standards. The extra funding comes with Sunak and Prime Mininster Boris Johnson under pressure from within the Conservative ranks about the historically high tax burden. Funding for the new package will not be set out until the spending review and Budget later this month. Sunak will use his speech at the Tory conference in Manchester on Monday to set out his vision of shaping the economy around "the forces of science, technology and imagination". The chancellor will announce the new funding will be used to help workers leaving the furlough scheme and unemployed over-50s back into work, while the "kickstart" scheme for young people will also be extended.

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BROKER RATING CHANGES

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STIFEL RAISES JD WETHERSPOON TO 'BUY' ('HOLD') - TARGET 1330 (1400) PENCE

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STIFEL RESUMES DIPLOMA WITH 'BUY' - TARGET 3300 PENCE

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JEFFERIES INITIATES VOLUTION WITH 'HOLD' - TARGET 550 PENCE

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COMPANIES - FTSE 100

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Flutter Entertainment said Amy Howe has been confirmed as chief executive officer of key US business FanDuel. Howe, who had joined FanDuel in February, was named interim CEO in July. She previously had been chief operating officer of Ticketmaster, part of Live Nation Entertainment.

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COMPANIES - FTSE 250

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Future said it expects full-year profit to be at the top end of forecasts, as it also revealed that Chief Financial Officer Rachel Addison will step down. The magazine publisher expects full-year adjusted operating profit to be at the top end of market expectations, placing the range of analyst forecasts between GBP183.5 million to GBP193.6 million. For the 2020 financial year, adjusted operating profit was GBP93.4 million. "I am pleased to report that the continued successful execution of our strategy puts us on track to report another year of strong revenue and profit growth. I am confident that the acquisition of Dennis will help to accelerate our progress," said Chief Executive Zillah Byng-Thorne. Future bought the publisher of The Week back in August for GBP300 million. Meanwhile, Addison will step down as CFO at the end of October and will be succeeded by Penny Ladkin-Brand. Currently chief strategy officer, Ladkin-Brand previously had been Future's CFO for five years.

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Plus500 guided to a full-year earnings beat following "further positive momentum" in the third quarter of 2021. "This positive momentum was highlighted by the consistent strength of Customer Income, a key underlying growth metric for Plus500, which has supported a strong revenue performance during the year to date," the company said. The contracts-for-difference trading platform now expects full-year revenue and earnings before interest, tax, depreciation and amortisation to be ahead of current analyst forecasts, which stand at USD555.8 million and USD277.9 million, respectively, according to company-compiled consensus. This will still fail to live up to 2020's tough comparatives, when revenue more than doubled to USD872.5 million, while Ebitda surged to USD515.9 million.

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COMPANIES - MAIN MARKET AND AIM

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Stockbroker finnCap said it expects interim revenue to grow more than 50%, and tightened full-year guidance For the six months to September 30, finnCap expects to deliver total revenue of GBP31.8 million, up 55% year-on-year. This was driven by finnCap Cavendish, which saw revenue surge to GBP16.2 million from just GBP4.2 million a year ago, as it "clearly capitalised on a robust M&A market". Revenue at finnCap Capital Markets dipped 4% to GBP15.6 million, performing well in a "comparatively quieter period". "Our overall revenue growth shows the clear benefit of our strategy to diversify our products beyond ECM - undertaken over the past 3 years - to service the broader strategic and financial needs of ambitious growing companies. Our pipeline is healthy and we now feel confident in delivering a revenue outcome for the year within an upgraded range of GBP45-50 million," said Chief Executive Sam Smith. finnCap previously guided to full-year revenue around GBP40 million to GBP50 million.

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Monday's Shareholder Meetings

Ultra Electronics Holdings PLC - GM re takeover by Cobham

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By Tom Waite; thomaslwaite@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Diploma PLC 3,206.00 -
Wetherspoon (J D) PLC 857.50 -
Wizz Air Holdings PLC 3,946.00
Volution Group PLC 499.00 -
Ryanair Holdings PLC 14.27
Flutter Entertainment PLC 10,190.00 -
Flutter Entertainment PLC 119.75 -

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