DUBLIN: Ryanair expects to lose near 1 billion euros (US$1.2 billion) in its current financial yr, by far its worst-ever performance, however, Chief Govt Michael O’Leary forecast a “dramatic recovery” this summer on vaccine roll-outs.
The Irish low-cost airline, Europe’s largest, forecast a loss of between 850 and 950 million euros in its present financial yr, which ends on March 31, around 5 times more than its previous record annual loss posted in 2009.
Group Chief Executive Michael O’Leary in a statement described the year as the most difficult in Ryanair’s 35 yr history.
However, he informed Ireland’s national broadcaster RTE to anticipate a “dramatic recovery” this summer on widespread vaccine roll-out, particularly in the UK.
The recovery should speed up in July and September, the second quarter of the airline’s financial yr, before returning to 70 percent and 90 percent of normal ranges between October and March mentioned Chief Financial Officer Neil Sorahan.
“We hope to be getting back to some kind of normality” within the winter, Sorahan mentioned.
COVID-19 restrictions slashed Ryanair passenger numbers by 78 percent within the last three months of the yr, the third quarter of its financial calendar, pushing it to a quarterly loss of 306 million euros (US$371.06 million). That compares with a loss of 300 million euro forecast in a company poll of analysts.
Ryanair’s 82 percent fall in revenue within the quarter in contrast with falls of 88per cent at rival easyJet and 77 percent at Wizz, which both reported results last week.
Ryanair has widely seen as one of the best-placed airways on the earth to weather the COVID-19 crisis due to its large cash balance and lack of long-haul and business-class.
It mentioned it had cash available of 3.5 billion euros at the end of December, compared with 4.5 billion at the end of September.
“The ‘in-line’ Q3’21 and the strong cash balance sheet of the company could also be enough today to buoy investor sentiments after the volatility of final week,” Citi analyst Mark Manduca mentioned in a word.
Ryanair’s share price was flat at 14.30 euros at 0845 GMT, down 15per cent from its pre-COVID peak of 16.9 euros on Jan. 10 the last yr.
The airline mentioned it might fly between 26 million and 30 million passengers within the 12 months to end-March in contrast with 149 million in its earlier financial yr. It might fly anywhere between 80 million and 120 million passengers within the yr to end-March 2022, O’Leary mentioned.
Ryanair in December ordered an additional 75 Boeing 737 MAX jets in what was the largest order since the aircraft was grounded in early 2019 following two deadly crashes. The jet was cleared in January to resume flying within the European Union.
Ryanair expects its first delivery in March with at least 24 of the 210 it has on order arriving in time for its peak summertime season.
