RYAAY - European airline stocks rise despite widespread worker strikes

2023-03-27 15:18:05 ET

A “megastrike” in Germany on Monday did not dampen performance for shares of Lufthansa ( OTCQX:DLAKY ), Ryanair ( RYAAY ), and more on Monday.

The nation’s transportation in terms of both rail and air was wracked by disruption as both the EVG and Verdi unions, each of which represent hundreds of thousands of workers, went on strike. Munich, Stuttgart, Frankfurt, and other major airports canceled scores of flights on Sunday into Monday, which was exacerbated by technical issues at German flagship airline Lufthansa ( OTCQX:DLAKY ).  According to German airport association ADV as many as 380,000 passengers were due to be stranded with the nation’s main rail operator, Deutsche Bahn, also feeling the impact of the strike.

“The trade unions are saying goodbye to the proven tradition that solutions are reached at the negotiating table in Germany,” ADV General Manager Ralph Beisel commented ahead of the walk-out. “The strikes announced for Monday go beyond any imaginable and justifiable level. This has nothing to do with a warning strike. Rather, it is an attempt to introduce French conditions in Germany by means of a general strike.”

Of course, protests at the nation’s western neighbor have grabbed headlines as of late in the wake of pension reform. France’s air traffic controllers have also taken to intermittent strikes, so often that Irish low-cost carrier Ryanair ( RYAAY ) has demanded EU action to prevent delays and disruptions for flights traversing French air space. For flights to France, Air France ( OTCPK:AFRAF ) has warned travelers that the French Civil Aviation Authority has asked airlines to reduce flight schedules to avoid strike-related disruptions.

The impact of these protests also spread eastward. For example, passengers in the Czech Republic and Poland seeking rail service to Germany saw significant disruptions or outright cancellations on Monday.

Despite the issues, shares of Ryanair ( RYAAY ), Lufthansa ( OTCQX:DLAKY ), Wizz Air ( OTCPK:WZZAF ), Air France KLM ( OTCPK:AFRAF ), easyJet ( OTCQX:ESYJY ) and International Consolidated Airlines Group ( OTCPK:ICAGY ) rose on Monday. US airlines with reliance upon European markets also rose on Monday.

Read more on Lufthansa’s latest earnings report .

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