Ryanair reports a 81% drop in passenger traffic and revenue over the past 12 months
FY21 was the most challenging year in Ryanair's 35-year history. Covid-19 caused the collapse of air traffic, almost entirely, from 149 million passengers (reported on March 31, 2020) to just over 27 million passengers (reported on March 31, 2021). All European states have imposed flight bans, travel restrictions and national blockages. There was a partial recovery in the summer 2020 season, as the initial blockages relaxed.
At the same time, RYANAIR announces a decrease in revenues of approximately 81%, from EUR 8.5 billion at March 31, 2020 to EUR 1.64 billion compared to March 31, 2021. Drawing a line and analyzing the ratio between expenses and income, the loss over the last 12 months of was only 815 million EURO.
Ryanair responded promptly and effectively to this crisis, working hard to assist the millions of customers affected with flight changes, refunds and modified travel plans. They minimized job losses through agreed pay cuts and with the help of government participation.
The Covid-19 crisis has precipitated the collapse of several EU airlines, including Flybe, Norwegian, Germanwings and Level, and triggered a tsunami of requests for state aid from EU governments by national operators, including Alitalia, Air France / KLM , LOT, Lufthansa, SAS, TAP, etc., which distorted competition in the EU, supporting high-cost, inefficient domestic carriers for many years.
The recent launch of several Covid-19 vaccines will facilitate the resumption of air travel.
The recent launch of several Covid-19 vaccines will facilitate the resumption of intra-European air travel and tourism this summer. If, as currently predicted, most European populations will be vaccinated by September, then a strong recovery in air travel, employment and tourism is expected in the second half of the current fiscal year (FY22). Recent strong increases in weekly bookings since early April suggest that this recovery has already begun.
Every passenger who chooses to travel with Ryanair will participate in the program launched by the airline to reduce CO₂ emissions by almost 50% / flight. In the next 5 years, Ryanair traffic will reach over 200 million passengers. Ryanair's $ 20 billion investment in modern aircraft will be key to achieving this ambition. The new "Gamechanger" B737-8200 aircraft offers 4% more seats, a 16% reduction in fuel consumption, a 40% reduction in noise emissions, which will help Ryanair reduce CO₂ and noise emissions in the next decade.
Revenues in fiscal year 21 fell 81% to 1.64 billion euros, in line with declining air traffic, reaching just 27.5 million euros from 149 million euros - ahead of Covid-19. Auxiliary revenues had a solid performance, as several customers chose priority boarding and reserved seats, resulting in an 11% increase in expenses for each passenger - up to almost 22 euros / passenger. Cost performance decreased by 66%. Due to an 81% reduction in traffic and aircraft delivery delays, the group recorded an inefficiency fee of € 200 million to cover fuel and currency in fiscal year 21.
Revenues in fiscal year 21 fell 81 percent to 1.64 billion euros, in line with declining air traffic.
Route development teams continue to work with airport partners across Europe and negotiate lower costs, receive traffic recovery incentives and expand offers to grow low-cost airports - for example, long-term extensions of offers in London Stansted (until 2028), Milan Bergamo (until 2028) and Brussels Charleroi (until 2030).
In December, the group increased firm order for B737-8200 aircraft from 135 to 210 aircraft. Reasonable and equitable compensation was also agreed with Boeing for delays in the delivery of these aircraft. These new planes have 4% more seats, use 16% less fuel and make 40% less noise. Ryanair hopes to receive the first Boeing 737 MAX 8200 aircraft by the end of May and hopes to have over 60 aircraft of this model by the end of this year.
The balance sheet remains one of the strongest in the industry, with a BBB credit rating (S&P and Fitch) of 3.15 billion euros, cash, as of March 31 and over 85% of the B737 fleet being operational. Since March 2020, the RYANAIR Group has reduced its consumption of cash by optimizing costs, taking into account the pay support schemes created by the EU, the cancellation of share repurchases and the postponement of the non-essential cap.
In the last year, RYANAIR has raised around € 1.95 billion in new funding (including € 400 million worth of shares, € 850 million in bonds and £ 600 million in CCFF), and cash has been boosted by supplier repayments in during the year. This financial strength has made it possible to capitalize on the many growth opportunities that will be available after the pandemic.