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Ryanair (RYAAY) Expects Capacity to be Omicron-Hit Until January

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With the highly contagious omicron variant of COVID-19 sweeping across Europe and causing panic, mainly in the UK and Ireland, Irish carrier Ryanair Holdings RYAAY anticipates its current and next month’s capacity to take a massive beating.

Per a Reuters report, chief executive Michael O'Leary told the Guardian newspaper that the carrier will carry roughly 10% less passengers in December 2021 and January 2022. According to O’Leary, Ryanair intends to fly about 10 million people in the final month of 2021 (1 million less than the estimated figure). Moreover, RYAAY aims to trim its January schedule by roughly 10%.

On a brighter note, O'Leary said that seats for the upcoming Christmas were “well-booked”. He further added that the omicron-led panic was primarily restricted to the UK and Ireland while “the rest of the continent is still travelling for business and for leisure".

Zacks Rank & Key Picks

Ryanair currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some better-ranked stocks within the broader Transportation sector:

Schneider National SNDR sports a Zacks Rank #1, presently. SNDR’s earnings outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%.

Shares of Schneider National have rallied more than 25% so far this year. SNDR gets a boost from its strong Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes. The Logistics unit is thriving on the back of favorable market conditions and other factors.

ArcBest Corporation ARCB flaunts a Zacks Rank of 1, currently. ARCB’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 27.4%.

Shares of ArcBest have surged more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are driving growth at ARCB.

Expeditors International of Washington EXPD carries a Zacks Rank #2 (Buy), presently. EXPD has a stellar earnings surprise history. Its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 29.1%.

Shares of Expeditors have appreciated 42% so far this year. Increased airfreight revenues aid EXPD in this coronavirus-ravaged scenario. The metric soared approximately 54% year over year in the first nine months of 2021. We are also encouraged by EXPD’s measures to reward its shareholders through dividends and buybacks.


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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
 
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
 
ArcBest Corporation (ARCB) : Free Stock Analysis Report
 
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
 
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