Ryanair cancellations: Share price SINKS as airline scraps 18,000 flights | City & Business | Finance

The embattled carrier’s stock value sunk another three per cent, as the Civil Aviation Authority said Ryanair had misled passengers about their rights over the cancellations.

Ryanair said disruption from the cancellations will now last until March 2018.

The share price fell back again today after a brief respite yesterday.

Investors rushed to sell-off Ryanair stakes as the group revealed thousands would be hit by cancelled flights triggered by a shortage of pilots amid mistakes in staff holiday rostering.

But experts said the stock price had not fared too badly considering the PR disaster and subsequent fallout from the flight cancellations.

David Madden, market analyst at CMC Markets UK, said: “All things considered, the share price is holding up well, but the market won’t know the impact to the company’s reputation for a few months.”

Ryanair’s statement that no more flights would be cancelled has helped to alleviate some investors fears.

Markets were also relieved that the airline is no longer going to pursue a buy-out of Alitalia, according to Ken Odeluga, market analyst at City Index.

He said: “It’s important to remember that Ryanair has reiterated full-year profit expectations, which in our view were on the conservative side anyway.

“We can’t ignore the negative PR impact from these rather mishandled scheduling changes, but financially, a line has been drawn under them.

“There are few carriers better-placed to weather the storm than Ryanair.

“It is the best cash-resourced low-cost airline on the (European) bloc and is expected to generate an additional c. £300m in free cash flow this year.”

The boss of the UK’s aviation regulator has claimed Ryanair is breaking the law in its handling of flight cancellations.

Andrew Haines, chief executive of the Civil Aviation Authority (CAA), said he was “furious” with the Dublin-based carrier because it is not telling passengers they are entitled to be re-routed by other airlines.

Mr Haines told BBC Radio 4’s Today programme: “They are not making it clear to people their entitlement.

“If they follow through on what they are saying then they would be breaking the law.”

A Ryanair spokesman said: “We will be meeting with the CAA and will comply fully with whatever requirements they ask us to.”

On Wednesday the airline cancelled an extra 18,000 flights for the winter season in a move that will hit 400,000 customers.

Ryanair is facing a multi-million compensation bill for cancelled flights after it previously revealed…

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