Almost 100 million more loss: Corona crisis hits Ryanair more severely

Europe’s largest low-cost airline Ryanair will experience a higher loss in the first business quarter than previously thought. Despite the initial easing in the Corona crisis, the Irish do not expect any noticeable improvement. So they expect red numbers even during the wedding of the travel season.

The Dublin-based company is expected to lose more than 200 million euros between April and June. This was announced by Ryanair with the figures from the previous financial year. So far, they had expected a shortfall of more than 100 million euros. The Irish expect fewer than 80 million passengers this year – and thus only almost half of the originally targeted 154 million passengers. Ryanair boss Michael O’Leary assumes that even in the summer between July and September, the peak of the travel season, red numbers will be the bottom line. However, these should not be as bad as in the first quarter.

Air traffic will decline substantially, which will also put ticket prices under pressure. Ryanair’s return to a normal flight schedule was also made significantly more difficult by the fact that large airlines would cut costs with government aid, the company said.

3000 jobs are to be cut

Ryanair is currently unable to make a profit forecast for the entire year. Ryanair had previously announced that there were up to 3000 pilots and cabin crew jobs on the strike list due to the crisis. Other options include earlier unpaid leave, cut salaries by up to 20 percent, and temporary base closures in Europe.

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In the past fiscal year (end of March), Ryanair carried 148.6 million passengers, around 4 percent more than a year earlier. Without the Covid 19 spread, a good 5 million more passengers could have been carried. Thanks to increasing average revenues, sales climbed by 10 percent to 8.5 billion euros.

Among other things, due to rising fuel costs and above all because of the decline in the value of kerosene price hedging transactions, the bottom line was that the profit attributable to shareholders fell by 26 percent to EUR 649 million. Without the special charge from the hedging transactions, the profit would have increased by 13 percent to around one billion euros


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