Ryanair posts 1 billion euro annual loss

The London-listed carrier expects strong rebound.



Europe’s largest budget airline Ryanair Holdings Plc. has reported a better-than-expected annual post-tax loss of €815m as passenger numbers slumped by 81% to just 27.5 million, but added it would break even in the coming year as government’s start easing international travel restrictions.

The airline said its fortunes were hit by the COVID-19 pandemic as “European governments (with little notice or coordination) imposed flight bans, travel restrictions, and national lockdowns.”

Ryanair Airlines Annual Loss 2021

Ryanair Holdings is counting on COVID-weary tourists as U.K. curbs ease, starting with Portugal.

The Dublin-based airline said its loss after tax performance over the 12 months to 31 March compared to profits of just over €1 billion in the previous year and was a consequence of passenger numbers slumping by 81% to just 27.5 million. Load factor declined to 71% from 95% year on year.

Ryanair shares were up 1.1% as of Monday morning.

“Recovery has already begun”

Ryanair Holdings is counting on COVID-weary tourists as U.K. curbs ease, starting with Portugal. Bookings have tripled 1.5 million a week since April 1 as Britain permits open leisure travel to 12 nations and territories as it seeks to revive tourism while keeping control over the pandemic.

The carrier is likely to fly 5-6 million passengers in its April-June quarter, usually one of the busiest months in the airline industry.

Chief executive officer Michael O’Leary said he’s hopeful Italy and Greece will be added to the quarantine-exempt “green list” this month, followed by Spain in early June. The CEO is currently in talks with airports in Italy, Spain, Sweden, and central and eastern Europe about adding further flights.

“The likely outturn… is that we are looking at something between a very small loss and break-even for the next 12 months but there are a lot of moving parts and there is a lot of uncertainty,” O’Leary said in a video presentation.

“Most of the uncertainty revolves around the timing of the recovery and the fares that people will pay into the key June, July, August, September travel period,” he said.

O’Leary said he expects capacity on intra-European routes to be lower in the near future, creating luscious opportunities to target market share with lower prices, especially in the summer of 2022, when the London-listed carrier receives 65 Max planes out of an order of 210.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Leave a Reply

Your email address will not be published.

Recent Posts

Tesla Shuts San Mateo Office Laying Off 200 Employees

Tesla Shuts San Mateo Office Laying Off 200 Employees

The billionaire entrepreneur had previously commented on reducing the salaried workforce at Tesla. Out of nearly 100,000 Tesla employees worldwide, 42% are based out of the United
3 hours ago
The Mattel Metaverse – Launched by Cryptoys

The Mattel Metaverse – Launched by Cryptoys

In a recent interview, he acknowledged that toys and players are continuously evolving. Keeping this in mind, the company wants to develop its wares both in the physical and digita
9 hours ago
Multiple Fires Force CPSC to Recall Costco Solar Patio Umbrellas

Multiple Fires Force CPSC to Recall Costco Solar Patio Umbrellas

The Costco umbrella recall was jointly issued by the CPSC, Health Canada, SunVilla, and Costco. The CPSC has urged customers to remove the solar panel puck from the top of the umbr
1 day ago
Volvo Zero-emission Truck – Traced by Water Vapor

Volvo Zero-emission Truck – Traced by Water Vapor

In early 2022, Volvo signed the Drive to Zero pledge, reiterating its commitment to provide zero-emission commercial vehicles. Volvo is one of the largest manufacturers of cars, tr
1 day ago
Bill Ackman on Inflation: The Fed Will Hike Interest Rates

Bill Ackman on Inflation: The Fed Will Hike Interest Rates

Last month, the hedge fund manager suggested that only aggressive monetary tightening or a collapse in the economy will do the trick. He stated that the markets will recover if the
3 days ago
Cadillac’s Luxury Electric Vehicle Starts At $300,000

Cadillac’s Luxury Electric Vehicle Starts At $300,000

The Lyriq is the headliner for Cadillac as it is the first of GM’s brands to go all-electric by 2030.The Celestiq will not roll off GM’s usual factories, rather it will be
3 days ago