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Ryanair said is preparing for a \u201chugely challenging\u201d period to continue as it reported a loss of $230.6 million (\u20ac197 million) in the first half of the year.<\/p>\nRyanair said is preparing for a \u201chugely challenging\u201d period to continue as it reported a loss of $230.6 million (\u20ac197 million) in the first half of the year.<\/p>\n
The Ireland-based low-cost airline said it \u201cexpects to record higher losses\u201d in the second half of the year, despite having a lower cost base and a stronger balance sheet.<\/p>\n
Coronavirus saw 99 per cent of the carrier\u2019s fleet grounded for almost four months between mid-March and the end of June.<\/p>\n
The company said traffic in the first half of the year fell from 86 million to 17 million passengers compared with the same period last year, around 80 per cent.<\/p>\n
Its revenue dropped 78 per cent to $1.38 billion (\u20ac1.18 billion), while the loss in this half year contrasts with a profit after tax of $1.35 billion (\u20ac1.15 billion) in the first half of last financial year.<\/p>\n
With almost no traffic in the first quarter of the year, the \u201cvast majority\u201d of the first half of the year\u2019s revenue was earned in the second quarter, the firm said.<\/p>\n
It added: \u201cGiven the current Covid-19 uncertainty, Ryanair cannot provide FY21 PAT (profit after tax) guidance at this time.<\/p>\n
\u201cThe group expects to carry approximately 38 million 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.\u201d<\/p>\n
It said the pandemic, uncertainties over Brexit, airline pricing, fuel costs, competition from new and existing carriers, actions by governments and the willingness of passengers to travel \u201ccould significantly impact\u201d its results for the remainder of the year.<\/p>\n
It was critical of what it called a \u201cflood of illegal state aid from EU governments\u201d to carriers including Air France and Lufthansa, which it said would \u201cdistort competition and allow failed flag carriers to engage in below-cost selling for many years.”<\/p>\n