Economy & Politics

Ryanair takes the worst quarter in its history

The Irish airline, which will soon no longer fly from Frankfurt-Hahn, has suffered the full brunt of the coronavirus pandemic. In 35 years of existence, the group explains that it has never experienced such a catastrophic quarter.

The Irish airline, which will soon no longer fly from Frankfurt-Hahn, has suffered the full brunt of the coronavirus pandemic. In 35 years of existence, the group explains that it has never experienced such a catastrophic quarter.

(MF with AFP) – While in Luxembourg the crisis resulting from covid-19 places the various aviation players face the challenge of keeping jobs afloat, most airlines already have one knee on the ground. And hope to recover with the resumption of domestic flights.

Ryanair, which operates twelve routes from Findel but is preparing to leave Frankfurt-Hahn, is not spared. The company has just experienced the “most difficult quarter in its history” between April and June, due to the paralysis of air traffic during the pandemic. The low-cost carrier announced in a statement dated Monday that it suffered a net loss of 185 million euros during the first quarter of his staggered fiscal year.


Frankfurt-Hahn has been experiencing a constant decrease in passenger traffic for some time now. The low-cost airline will abandon the German airport in early November but will continue to offer its services to Findel.


The Irish company however, limits the breakage a little after warning in May that his loss could reach 200 million euros over the period. The number of passengers carried was reduced to almost nil at 0.5 million, compared to 42 million in the first quarter a year earlier when it had been achieved a net profit of 243 million euros.

Containment and border closures in Europe brought air traffic to a screeching halt from mid-March, so that until June, more than 99% of Ryanair planes stayed on the ground. Its turnover collapsed to 125 million euros, against 2.312 billion a year earlier.

Ryanair has resumed its flights since July 1, a crucial period with departures on vacation and a month in which the company should operate at 40% of its usual capacity, before ramping up and reaching 70% in September. The company does not intend to transport than 60 million passengers on all of his 2020-2021 fiscal year (closed at the end of March), i.e. a drop of 60%.

A dreaded second wave

To cope with the shock of the pandemic and demand that should be depressed for a while, the group recently announced a restructuring plan that involves loss of 3,000 jobs or 15% of its workforce. Ryanair explains that it has found agreements with unions to reduce wages, such as in the United Kingdom and Germany, which should help limit job cuts.


 Luxair - Cargolux um Findel

Two weeks after the first tripartite for 10 years, an exchange dedicated to the aviation sector was held on Tuesday. Three working groups dedicated to the future of Luxair, Cargolux and Luxairport and their employees have been set up. All will have to submit their proposals on September 17.


The group says it has a among the strongest cash in the industry, to 3.9 billion euros, which it preserves by reducing costs and expenses. In addition, despite the uncertainties about the return to the sky of the Boeing 737 MAX, Ryanair continues to bet on the device which should allow the company to support its growth while limiting polluting emissions and costs.

Ryanair, which should have received its first plane more than a year ago, to have around 40 in its fleet in 2021, now hopes to obtain delivery before the end of 2020. Ryanair finally specifies that it cannot set a target of results on the exercise and explains that second wave of Covid-19 in the fall in Europe is his main fear at present.


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