The latest passenger figures from low-cost airlines Ryanair (RYA) and Wizz Air (WIZZ) show a sharp increase in passenger numbers as the tourist season gets into full swing, lifting some of the gloom which has dogged the sector.
During June, Ryanair carried 5.3 million passengers compared with just 400,000 in the same month last year and 1.8 million in May. Ryanair’s load factor - a measure of the percentage of available seating capacity which is full with passengers - fell to 72% from 79% in May as the airline added more flights.
Wizz Air carried 1.55 million passengers last month, three-times the number a year ago, with a load factor of 64%. Wizz, which describes itself as the fastest-growing European low-cost airline, has been aggressively expanding its operations during the pandemic in order to cash in on a surge in demand once restrictions are lifted.
Shares in Ryanair climbed 1% to €16.37, although Wizz Air stock fell 0.6% to £47.03, but both stocks are now trading above pre-pandemic peaks of early 2020. That cannot be said for peer EasyJet (EZJ), which remains about 40% below its near-£15 levels of early 2020.
GREEN LIST TO GROW
Airline stocks had a wobble at the end of June on concerns over travel bans on UK tourists within Europe. Press reports suggested Germany was considering introducing a ban on British visitors to the EU, regardless of their vaccination status, due to the spread of the highly contagious delta variant of coronavirus.
‘Despite a number of popular tourist spots now being on offer to British holiday makers thanks to the government's updated “green list”, it is precarious and it won't mean a great deal if Germany gets its way and UK tourists are banned entry to the whole EU because of a concern over the delta variant,’ said Danni Hewson, financial analyst at AJ Bell.
Package holiday specialist and airline Jet2 (DTG) reported a huge surge in bookings to the Balearic Islands, Malta and Madeira for July and August after they were put on the green list at the end of last month.
However, Jet2 said yesterday it would not fly to “amber list” countries until the government’s next review of the “traffic light” system, which is expected to be on 15 July. At present, UK travelers coming back from amber list countries have to quarantine on return.
