‘2021 fiscal year to be most difficult in Ryanair’s history’
In a recent press release, Irish low-cost airline Ryanair reports a €306 million net loss and a 78% drop in customers during 2020’s third-quarter (October to December) due to the corona pandemic and the different travel restrictions. The airline declares that its balance sheet remains one of the strongest in the industry, with €3,5 billion in cash at the end of 2020.
The group has been forced to take drastic measures, such as cutting 15% of its workforce, but it remains hopeful for the future and looks for growth opportunities beyond the Covid-19 crisis and vaccinations rollout.
82% revenue loss
“The 2021 fiscal year continues to be the most challenging in Ryanair’s 35-year history. Recently announced Covid-19 lockdowns and travel restrictions across the EU and UK will reduce our forecast to between €26 and €35 million (previously €35 million).
Visibility remains limited due to uncertain and constantly changing Covid-19 travel restrictions, and the timing of the roll-out of vaccines across the EU, but we are cautiously guiding an FY21 net loss of between €850 and €950 million,” writes Ryanair in its latest press release.
At the end of the third quarter of the 2021 fiscal year (from March 2020 to March 2021), numbers of the Irish low-cost airline Ryanair fall all around. It’s revenue dropped by 82%, and it transported 78% fewer passengers than in the same period last year.
Ryanair isn’t alone in that situation, the whole aviation sector is taking a hit. Competitor EasyJet also announced its results a few days before, with an 88% drop in revenues in 2020’s Q3. EasyJet plans to only use 10% of its capacity in the upcoming quarter.
Despite the crisis, Ryanair declared being strong enough and that its balance sheet remains one of the strongest in the industry with €3,5 billion in cash at the end of 2020. The group even ordered 75 additional Boeing 737-8200 MAX in December, bringing the total order to 210 units.