Ryanair Reports €185M Loss for the Quarter
The British low-cost airline Ryanair reported on the results of the “hardest quarter” in the airline’s history. During the reporting three months, the airline carried only about 500 thousand passengers, which is 99% less than last year. Almost all of the flights performed are part of government programs to return citizens from abroad who were stuck there after the borders were closed due to the COVID-19 pandemic.
Accordingly, the company earned practically nothing in this quarter – only € 125 million against € 2.3 billion a year earlier. As a result, Ryanair ended the quarter with a net loss of € 185 million – despite the fact that the company has already cut costs by 85%.
The company resumed almost all of its flights from July 1. However, as noted in the report, the projected workload of aircraft in July in the region will be of 40% of the carrier’s normal workload at this time of year. The company hopes that in August this figure will rise to 60%, and in September – to 70%. At the same time, Ryanair notes that the current increase in the number of diseases in the world speaks of a possible « second wave » of COVID-19 infection, which will be a disaster for the airline industry. “The second wave of COVID-19 cases across Europe in late fall (when the annual flu season begins) is our biggest fear right now,” Ryanair said in a statement.
Ryanair shares dropped 8% at the opening of trading on the London Stock Exchange.