The airline industry has enjoyed a boost in shares as of late thanks to Ryanair and a higher-than-expected rise in its profit forecast. According to the carrier, it will have a full-year profit of between 750 million and 770 million. This is an increase of 7.3 percent compared to the previous forecast of 650 million.
This increase not only helped Ryanair but also other airlines. For example, Easyjet shares rose 2.7 percent just after this announcement was made. British Airways also enjoyed a 1.3 percent increase in shares thanks to this announcement.
Of course, the increase in airline stock was not enough to pull the stock market out of its downfall. This was thanks to shares for both energy and bank companies pulling the index down nearly 59 points. Shares for backing group HSBC fell nearly 1.7 percent.
Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers, said that when people take regulatory provisions into consideration, this was a very strong operating quarter for HSBC. Unfortunately for the bank, these kinds of provisions cannot simply be overlooked. As a result, its shares will continue to fall. The same goes for British energy groups such as British Gas and Centrica. They both saw shares fall by 2.3 percent, hurting the industry as a whole.