Ryanair swings to €200m loss and expects a worse H2

Ryanair (LON: RYA) has reported a €197m (£177.8m) loss in the first half of 2020.

The budget airline saw 99% of its fleet grounded from mid-March to the end of June.

Since the end of lockdown, Ryanair has flown just 20% of passengers compared to last year’s summer period.

Revenue fell by 78% to €1.18bn as traffic fell 80% to 17.1m. Profit for the first half of the year fell from £1.2bn to the £177.8m loss.

Looking forward, Ryanair warned that it could see greater losses for the second half of the year.

The group said in a statement: “FY21 will continue to be a hugely challenging year for Ryanair. Given the current Covid-19 uncertainty, Ryanair cannot provide FY21 PAT guidance at this time. The Group expects to carry approx. 38m passengers in FY21, although this guidance could be further revised downwards if EU Govts continue to mismanage air travel and impose more uncoordinated travel restrictions or lock downs this winter. The Group expects to record higher losses in H2 than in H1.”

Chief executive Michael O’Leary told the BBC: “We’ve already stripped out the schedule for most of November and the December, we have really just a skeleton schedule for the services between UK airports and continental European destinations.”

The airline cut flights throughout September and October after a drop in bookings.

Ryanair shares (LON: RYA) opened almost 3% lower on Monday morning.