The low-cost airline Ryanair posted in the first quarter, « the most difficult of its 35 years of history », a net loss of 185 million euros, while in the same period last year it generated a profit of 243 million euros.
Forced by the Covid-19 pandemic to ground 99% of its fleet between mid-March and June 2020, the Irish cheap flight specialist is paying the costs: in Q1 (April-June), Ryanair saw its revenues fell 95% to 125 million euros, from 2,312 million euros in 2019, and ended the quarter with a net loss of 185 million euros (instead of 243 million euros in Q1 2019). All with three-month traffic dropping from 41.9 million to just over 500,000 passengers (-99%), and with a load factor dropping from 96% to 61% (-35 percentage points). But as of June 30, the group had cash of 3.3 billion euros.
An 85% reduction in costs in the first quarter was not enough to make up for this loss in revenue, as bookings « came to a screeching halt » in the first weeks of the Covid-19 crisis. Over the past three months, significant work has been undertaken to improve Ryanair’s leadership in terms of costs, which is essential if the Group’s airlines are to compete « with heavily subsidized national carriers who will be able to engage in sales at prices below cost for years to come ”. The Group has negotiated with unions « modest pay cuts with our employees and their unions which we hope will help prevent widespread job losses. »
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