Published on : Wednesday, November 4, 2020
For the first time in business Ryanair experienced huge loss in the summer period. For decades they have been offering services, and now for the first time they made it official that due to the coronavirus pandemic they suffered loss, and this is not all, with the second wave of virus infection affecting as winter is setting in, the brand has little hope of recovering their condition.
As infections sparks fresh lockdowns across Europe, one of the largest low-cost airline mentioned that COVID-19 restrictions led to passenger numbers down 80% in the six months to September 30, the time when the carrier used to make most of its annual profit. Unfortunately, this year, it posted a loss of 197 million euros ($230 million) for the first half of its financial year, versus profit of 1.15 billion in the same period last year. A company poll of analysts had on average forecast a loss of 244 million euros.
The airline’s chief executive Michael O’Leary in September mentioned that it expected a second-half loss greater than the first. Ryanair reaffirmed plans to fly 38 million passengers this financial year compared with the 149 million of the same period last year, and said the number could fall further.
Ryanair, which has one of the airline industry’s strongest balance sheets, said it had cash on hand of 4.5 billion euros at September-end and aircraft worth about 7 billion euros. It said its cash balance was supported by a 250 million euro supplier reimbursement from Boeing in the July-September quarter.
The airline has only posted one annual loss in the past 30 years, in 2009. It still made a small profit in the summer of that year.