The low-cost airline Ryanair announces the elimination of 3,000 jobs to "survive" the health crisis of the coronavirus which has hit the air sector hard. Pilots and flight personnel are mainly concerned. The plan covers 15% of the total workforce of around 19,000 people

Another thunderclap in the European sky. The low-cost airline Ryanair will cut 3,000 jobs in order to be able to "survive" the air transport crisis, due to coronavirus, which endangers the entire sector. The Irish carrier explains that pilots and aircrew will mainly be concerned, and that the plan covers 15% of the total workforce of around 19,000 people. The job cuts are "the minimum we need to survive the next 12 months," company boss Michael O'Leary said on the BBC.

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More deletions planned

If a vaccine is not found and the traffic does not return to normal, "we may have to announce more withdrawals," he warned. Michael O'Leary also estimated that his restructuring plan could lead to base closings in the United Kingdom. The British union Unite asked him to stop the job cuts, saying it had "large cash reserves and was better equipped than other companies" to face the crisis.

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Like its competitors in Europe, Ryanair is struck by the paralysis of air transport in the midst of a pandemic, which deprives airlines of revenues while their fixed costs remain enormous. British Airways had announced this week the loss of 12,000 jobs, more than a quarter of its workforce. EasyJet has strengthened its finances with a loan of £ 600 million from the public authorities. And the Virgin Atlantic company is fighting for its survival, its founder Richard Branson asking for help from the government for the moment in vain.

Stopped flights, postponement of aircraft orders

Ryanair specifies that its flights will be stopped until at least July and that it will be necessary to wait for the summer of 2022 for a return to normal. The company predicts that employees will take leave without pay and that others will see their wages reduced by 20%. Michael O'Leary had already cut his salary by 50% for April and May, and will now extend this measure for the rest of the annual exercise, until March 2021.

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The company is also forced to review its growth plans and aircraft orders. He says he is in negotiations with Boeing to reduce the number of deliveries planned for the next 24 months. Ryanair will operate only 1% of its flights in April, May and June, or 150,000 passengers over the period, compared to 42.4 million expected without the pandemic. For the summer, the company plans to carry only half of the 44.6 million passengers planned.

Ryanair has been hit by the consumer association Which! and many customers who are seeking reimbursement for their flights. The company only offers them a voucher and only guarantees a cash payment after 12 months.

Empty seats?

The recovery promises to be very gradual and if EasyJet has raised the possibility of leaving the middle seats empty at first, but the Ryanair boss firmly opposes it. In financial terms, Ryanair expects a net loss of 100 million euros for the first quarter (April to June) and should be further in the red in the second quarter.

The group denounces the aid provided by governments to many of its competitors in Europe. Ryanair, who will not ask for government support, believes that this aid will distort competition for several years and will challenge it before the European courts.