Economy

Ryanair boss: Cheap airline tickets are likely to be more expensive

  • Ryanair released figures for the past fiscal year on Monday morning.
  • The Dublin-based airline expects a loss of more than 200 million euros between April and June, previously 100 million was expected.
  • Ryanair boss Michael O’Leary also said that the reduced flight schedule would put ticket prices under considerable pressure.

Europe’s largest low-cost airline Ryanair is harder hit by the coronavirus crisis and will post a higher loss than expected in the first business quarter. A loss of more than 200 million euros is likely to occur between April and June, the company announced on Monday with the figures for the previous financial year. The Dublin-based group had previously expected a loss of more than 100 million euros. The Irish expect fewer than 80 million passengers this year – and thus only almost half of the originally targeted 154 million passengers.

Ryanair boss Michael O’Leary assumes that even in the summer between July and September, the peak of the travel season, red numbers will be the bottom line. However, these should not be as bad as in the first quarter. Air traffic will decline substantially, which will also put ticket prices under pressure. Ryanair’s return to a normal flight schedule was also made significantly more difficult by the fact that large airlines would cut costs with government aid, the company said. Ryanair is currently unable to make a profit forecast for the entire year.

Ryanair had previously announced that as a result of the crisis, up to 3,000 pilots and cabin crew jobs were on the strike list. Other options include earlier unpaid leave, cut salaries by up to 20 percent, and temporary base closures in Europe.

In the past fiscal year (end of March), Ryanair carried 148.6 million passengers, around four percent more than a year earlier. Without the Covid 19 spread, a good five million more passengers could have been carried. Thanks to rising average revenues, sales climbed by ten percent to 8.5 billion euros.

Among other things, due to rising fuel costs and above all because of the decline in the value of kerosene price hedging transactions, the bottom line was that the profit attributable to shareholders fell by 26 percent to EUR 649 million. Without the special charge from the hedging transactions, the profit would have increased by 13 percent to around one billion euros.

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