Ryanair reports €185 million first quarter loss

Daniel Fowler
July 29, 2020

Ryanair said that it is impossible to predict the duration of the coronavirus pandemic and that a second wave of the virus in Europe this autumn is the "greatest fear".

Ryanair added Monday that it expects to carry a total of 60 million passengers over the course of 2020/2021 fiscal year which runs to March.

The low-priced airline, like its competitors, was forced to ground its fleet as Covid-19 wreaked havoc on timetables with travel bans and lockdowns introduced worldwide.

Ryanair, Europe's largest low-priced airline, reported a narrower than expected loss in its fiscal first quarter today. "If we can avoid a second wave of COVID-19 infections and enough people feel sufficiently confident to go on holiday the group may be able to mitigate some losses and start to position itself for a recovery - if not things could get harder from here".

The company continued: "The group now expects to carry approximately 60 million passengers in this financial year and expects to record a smaller loss in the second quarter (which reflects a gradual return to flying from July 1) than in the first quarter".

Sanford C. Bernstein analyst Daniel Roeska said in a note that Ryanair's numbers offer some comfort to investors and that the carrier is "better-positioned than most to withstand negative shocks, but not immune". For the whole financial year, traffic is projected to fall by 60 percent to just 60 million passengers, but even that was an "ambitious target". 40% of our normal July schedule, rising to 60% in August and, hopefully, 70% in September.

37 new cases of COVID-19 confirmed in Clark County
There have been 207 recovered cases, nine deaths, 226 total confirmed cases and 22,133 negative test results. Eight of those patients are hospitalized and 25 total patients have been hospitalized.

The airline, Europe's largest low-priced carrier, said the move means that 85% of its pilots and 75% of cabin crew across Europe have now accepted temporary cuts to pay and conditions in the wake of the COVID-19 pandemic. "The rate was going up very rapidly in Spain and we had to take very rapid, decisive action", she said.

The imposition of flight or travel bans and widespread lockdowns forced Ryanair to ground its fleet for nearly four months, the airline said.

It is expected that over 90% of customer cash refund requests will be cleared by the end of July. 60m passengers in FY21 and expects to record a smaller loss in Q2 (which reflects a gradual return to flying from 1 July) than in Q1.

Chief Executive Officer Michael O'Leary has said a fare battle may be on the cards as airlines chase market share in the wake of the Covid-19 outbreak.

(Alliance News) - Ryanair Holdings PLC on Monday turned to a loss in the first quarter due to travel restrictions put in place because of the Covid-19 pandemic.

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