The recent Ryanair staffing disaster has been well documented by news outlets across the country, and has left many people without a flight to their desired destination. For Ryanair, this is undoubtedly a major setback in their day to day operations, and one which is bound to have consequences for the rest of the year. Here is some further information on how this crisis is affecting the budget airline.
The crisis, which involved a significant error with flight rostering and captains’ holidays, is forecast to cost the company 200m euros in revenues. This will no doubt have implications for their annual profit, and potentially lead to further losses in revenue as a result of lowered consumer confidence.
Whilst the airline has offered to rearrange flights and give affected customers vouchers, many routes have been cancelled for the coming months, meaning passengers may have to choose another airline in order to reach their destination.
There was a notable dip in the share price of Ryanair when the staffing catastrophe broke into news headlines. An individual share dropped 6 euros in price as investor confidence fell as a result of the bad news.
That being said, their share price quickly rebounded in a short space of time, although it did not recover completely. Those involved in the likes of CFD trading and spread betting will, no doubt, have been watching the news with interest, especially those who predicted the drop in share price. Those who had bought stock outright may well have been disappointed by the news, which could make shares more volatile for the foreseeable future.
One of the major, longer lasting effects of the crisis is likely to be the impact it will have on consumer confidence. Although the budget airline offers some of the lowest prices available for flights, there is no telling how future potential customers may react.
Many may seek to book their holidays with other budget airlines, whilst others may well decide to spend a bit more and use a pricier airline. If one thing is for certain, though, it is that many thousands of people are currently infuriated by Ryanair’s debacle.
Ultimately, however, it seems that the company has not been majorly affected by the crisis, and is most likely set to recover in the future. It remains to be seen whether share prices fully recover, but Ryanair will now be looking to the future to rescue its tarnished reputation.