The corona crisis is hard on the low-cost airline Ryanair: The airline is sliding into the loss zone – but not as deep as expected. But in the fall it could get much worse.
The collapse of air traffic in the Corona crisis did not cause Europe’s largest low-cost airline Ryanair to run as deep into the red as expected in the past quarter. The bottom line was a loss of 185 million euros in the first business quarter until the end of June after a profit of 243 million a year earlier, as the rival of Easyjet and the Lufthansa subsidiary Eurowings announced in Dublin on Monday.
Sales fell 95 percent year-on-year to EUR 125 million. The number of passengers even dropped by 99 percent to half a million.
The quarter was the most difficult in Ryanair’s 35-year history, the company said. Given the corona impact, the airline had already announced plans to cut 3,000 jobs.
Fear of second wave of infection
The management around Ryanair boss Michael O’Leary still did not venture a profit forecast. The greatest danger is a possible second wave of infections in late autumn. Ryanair now expects around 60 million passengers in the financial year to the end of March 2021.
In the second business quarter, which covers most of the important summer season, the loss is expected to be lower than in the past quarter, as air traffic has picked up again since July 1.