Shares value of Ryanair and EasyJet climbed up sharply on yesterday after their rival airlines Monarch administration collapsed in morning early hours.
Just after the opening of European stock market, the shares value of easyJet surged around 4 percent, making the airline one of the biggest climbers on the FTSE 100 index. The airlines extended the gains throughout the day and finished the session with over 5 percent higher value.
Similarly, Dublin-listed shares in Ryanair who were troubled with recent staffing debacle which led to the cancellation of thousands of flights ended the day up with rising in share by around 3.5 percent.
Likewise, the share market of Monarch Airlines was collapsed.
“Usually what’s bad for an airline – higher fuel costs, terror attacks, air traffic control strikes – [is] bad for the sector. Shares in the various players have a tendency to track each other with some consistency,” reported a senior market analyst at ETX Capital.
“But the failure of Monarch is good news for rivals. Monarch is the third airline to fail in share market this year in Europe, after Alitalia and Air Berlin, is a symptom of over-capacity and overly-aggressive pricing,” added the market analyst.
The entire flight operated by Monarch Airline from the UK and travel agencies have already been canceled with immediate effect, prompting what the Government described as the country’s biggest ever peacetime repatriation of stranded travelers.
The collapse of the Monarch will also result in unemployment for around 2,750 staff of the airlines.