Ryanair expects a loss-making winter

Ryanair expects a loss-making winter

The collapse in air traffic in the corona pandemic pushed europe’s biggest low-cost carrier, ryanair, as well as other airlines, into the red in the summer.

Group CEO michael o’leary has no illusions for the winter in view of rising infection figures, new lockdowns in several states and many travel restrictions. The company has once again significantly reduced its flight offerings for the winter months. Now O’leary expects an even higher loss in the cold half of the year than in the summer half, as ryanair announced in dublin on monday.

Despite the partial lockdown, which applies in england, germany and other countries in november, passengers can not hope for refunds, if their booked flights still take place. "If a flight goes, we’re not going to give refunds," ryanair chief executive michael o’leary told the BBC broadcaster. But it was possible to rebook for december or january. For the months of november to december, the company has already reduced its flight offer to 40 percent of the previous year’s level.

After the de facto flight freeze between mid march and the end of june, the recovery of ticket demand in the summer proved to be bearish for ryanair and other airlines. The rising number of infections in many countries and new travel restrictions kept many people from flying and the ryanair management turned back the planned expansion of the flight offer.

In the second quarter to the end of september – otherwise the most important travel period of the year – ryanair posted a loss of around 226 million euros. A year earlier, the company had posted a profit of 910 million euros. In the first half of the fiscal year, the loss totaled almost 411 million euros. In the second half of the business year up to the end of march, the loss was allowed to be even higher, he said.

For the full fiscal year until the end of march 2021, ryanair management expects about 38 million passengers – subject to change. If the governments in the european union impose further uncoordinated travel restrictions, the number could be even lower, it was said. In the previous fiscal year, ryanair had still paid nearly 149 million passengers.

Many airlines have been struggling to survive for months due to the pandemic. Lufthansa, air france-KLM and others were saved from bankruptcy with billions in government aid. Ryanair considers this aid to be illegal and sees it as a distortion of competition. Because of the crisis, the irish low-cost airline has recently raised fresh money from investors on the stock market. However, the company also benefits from the government’s corona loan program in the united kingdom.

For the time after the pandemic, however, ryanair believes it has a good chance of benefiting from the financial plight of many of its competitors. So the range of flights within europe was allowed to remain steamed for years to come, it hieb. This will enable ryanair to expand its own route network and increase the size of its fleet, it said.

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