A rise in passenger figures from Ryanair Holdings PLC (LSE:RYA) for December were actually lower than expected and imply the need for a “cautious stance” on the airline's shares, according to analysts.
The low-cost airline flew some 11.5mln passengers in December, a 21% increase on the 9.5mln carried in the last month of 2021.
November saw passenger numbers increase by 10%, according to an update released today.
But rather than an impressive resurgence, analysts at Liberum suggested the figures were lighter than expected, reflecting a comparatively weaker month a year earlier.
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The figures from the same month in 2021 were impacted by the emergence of the Omicron variant of COVID and a resurgence in international travel restrictions, said Liberum, adding that Ryanair’s third quarter figures of 38.4mln were below forecasts.
The broker had anticipated 40.5mln passengers would travel with the airline during the quarter but suggested “that could imply a stronger fourth quarter than we had assumed” given Ryanair’s traffic guidance of 168mln passengers for the full year.
Liberum added: “We retain a cautious stance,” with Ryanair’s target of a double-digit percentage fare improvement “challenging in a likely recessionary environment”.