Ryanair passengers fell by 81% to 27.5m
Ryanair (LON:RYA) confirmed on Monday that it made a loss of (€815m) £702m for the previous financial year, which it put down to the disruption caused by the coronavirus pandemic.
The airline, which made a profit after tax for the previous 12 months to 31 March, saw its passenger numbers plummett to 27.5m, a fall of 81%.
Ryanair also laid blame at the feet of governments across Europe, by saying that: “European govts (with little notice or co-ordination) imposed flight bans, travel restrictions and national lockdowns”.
The airline said it was able to find its way through the ordeal of the pandemic thanks government support schemes, as well as negotiating pay-cuts with staff.
Ryanair disclosed a cash holding of €3bn, which the company suggested will see it through the remainder of the crisis in a healthy position.
Jack Winchester, analyst at Third Bridge, commented on the airline’s ability to weather the storm and come out the other end of the pandemic.
“This morning’s results from Ryanair come with little surprise. For an airline which was consistently making considerably over a billion Euros of operating profit pre-Covid, this 840mEUR loss shows how devastating Coronavirus has been for the air travel market,” said Wnchester.
“Ryanair, like its ultra-low-cost peer Wizz Air, weathered the crisis far better than its legacy counterparts. It also stands ready to hoover up the pent-up demand for foreign holidays we’re about to see as rules on international travel finally ease.”
“While Lufthansa, IAG and Air France KLM all struggled under the weight of huge hub-and-spoke airline operations, Ryanair’s point-to-point model meant it was able to adapt faster and more fully to a historic year of low demand.”
“Ryanair, never one to waste a crisis, is now going on the offensive, seeking to gain further market share and utilise the 210 new Boeing 737 Max aircraft it has recently ordered.”
