Ryanair reports losses of 197 million euros in the first half of the fiscal year 2020
On November 2, 2020, Ryanair presented some figures for the first half of the fiscal year 2020. For the first time in 30 years of history, RYANAIR reports significant losses.
Ryanair reports losses of 197 million euros in H1
The restrictions imposed to combat the Covid-19 pandemic have led to a decrease in the number of passengers and, implicitly, to a decrease in revenues. RYANAIR's revenues fell from 5,39 billion euros to 1,18 billion euros, and expenses from 4,10 billion euros to 1,35 billion euros. Thus, the airline announced losses of 197 million euros in the first 6 months of the fiscal year 2020 (April - September).
Covid-19 restrictions reduced the number of Ryanair passengers by 80%, from 86 to 17 million
RCovid-19 restrictions reduced the number of Ryanair passengers by 80% from 86 to 17 million. Aircraft loading decreased from an average of 96% to 72%. This was RYANAIR's first loss since 1990.
At the end of September, Ryanair was one of the strongest companies in the industry, with a BBB credit rating (S&P and Fitch) and over 4,5 billion euros in cash.
From March, the RYANAIR group has reduced cash consumption by reducing costs, participating in the wage support schemes of EU governments, canceling share buybacks and postponing non-essential capital.
RYANAIR Group is well funded to deal with Covid-19 crisis and eliminates refinancing risk, as it prepares to repay its debt at maturity next year (CCFF £ 600 million in March and a € 850 million bond in June 2021). This financial strength allows the Group to capitalize on the many growth opportunities that are available after Covid-19.
Ryanair CEO Michael O'Leary also said that will not reimburse money for flights canceled in November, but passengers will be able to change flight dates at no additional cost.
And the estimates for fiscal year 21 are not very good. The RYANAIR group expects to transport approx. 38 million passengers in fiscal year 21, although this prediction could be further revised downwards if EU governments continue to mismanage air travel and impose more restrictions. The group expects to record higher losses in H2 than in H1.