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Ryanair Reports Second Quarter Losses
Ryanair Holdings PLC reported a loss of €185 million for the second quarter of 2020, the first quarter of its fiscal year, on Monday. This is a stark contrast from the same period last year, when the carrier made €243million, the airline announced in a press release.
The loss is attributed to the impact of the ongoing coronavirus pandemic that has brought travel around the globe. EU-imposed travel bans and widespread population contributed to the dropdown and forced Ryanair to ground its fleet for almost four months.
During this period, Europe’s largest budget carrier operated repatriation flights for different EU Governments and flew all-cargo flights across Europe to deliver Personal Protective Equipment (PPE).
Ryanair’s revenue fell by 95% – almost €2.2 million – while passenger traffic dropped 99% to just 500,000 passengers. Passenger demand was at 41.9 million flyers during the same time last year.
However, Ryanair did record it has €3.9 billion in cash.
The pandemic has also seen the closure of some EU airlines that include SunExpress, Level, Flybe and Germanwings.
“During the past 3 months significant work has been undertaken to improve Ryanair’s cost leadership, which is vital if Group airlines are to compete against hugely subsidised flag carriers who will be able to engage in below cost selling for years to come. The Group have negotiated modest pay cuts with our people and their unions that will, hopefully, help to avoid widespread job losses,” the airline’s press release said.
Return to Service
Ryanair Holdings PLC resumed flights across the majority of its network route on July 1. It expects a gradual passenger demand throughout July, August and September.
The group has implemented extensive health guidelines throughout the travel process, especially onboard its aircraft. It aims to provide enhanced safety to both passengers and crew while mitigating the speed of COVID-19.
“Our Route Development teams are working with airports all over Europe who have suffered substantial traffic declines during the Covid-19 crisis. Discussions are ongoing with aircraft suppliers to reduce aircraft lease rates and purchase prices to reflect the new post Covid-19 reality,” Ryanair said in its statement.
Ryanair was due to take delivery of its first Boeing 737 MAX-200 aircraft over a year ago. Boeing hopes for a Q3 2020 return to service for the MAX.
“We remain committed supporters of these ‘gamechanger’ aircraft which have 4% more seats, 16% lower fuel burn and 40% lower noise emissions. These new aircraft will enable the Ryanair Group to grow to 200m passengers p.a. over the next 5 or 6 years while reducing the Group’s cost base and significantly lowering its environmental footprint,” the airline’s press release said.
Ryanair also reports it expects a challenging FY21 amid the second wave of the coronavirus. “It is impossible to predict how long the Covid-19 pandemic will persist, and a 2nd wave of Covid-19 cases across Europe in late autumn (when the annual flu season commences) is our biggest fear right now,” continued the statement.
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