Dublin (AFP)
Irish airline Ryanair fell into the red between April and June during the "most difficult quarter in its history", due to the paralysis of air traffic caused by the pandemic.
The low-cost carrier said in a statement Monday that it suffered a net loss of 185 million euros in the first quarter of its staggered fiscal year.
The group explains that it has never experienced such an unfavorable quarter in its 35-year history.
However, he limits the breakage a little after warning in May that his loss could reach 200 million euros over the period.
The number of passengers carried was reduced to almost nil to 0.5 million, against 42 million in the first quarter a year earlier when it had achieved a net profit of 243 million euros.
Containment and border closures in Europe brought air traffic to a screeching halt from mid-March, so that until June, more than 99% of Ryanair planes remained on the ground.
Its turnover collapsed to 125 million euros, against 2.312 billion a year earlier.
Ryanair has resumed its flights since July 1, a crucial period with departures on vacation and a month in which the company should operate at 40% of its usual capacity, before ramping up and reaching 70% in September.
The company only intends to transport 60 million passengers over its entire 2020-2021 fiscal year (ended at the end of March), a decrease of 60%.
The group has also once again won out against state aid which has benefited certain airlines in Europe and distorts competition according to it.
"Management has taken steps to reduce costs in the long term but is concerned that this may not be enough to compete with companies that have received government support," said William Ryder, analyst at Hargreaves Lansdown.
"In any case, what matters most is a recovery in demand by next summer," he adds.
- A dreaded second wave -
But in the shorter term, its recovery program could be disrupted by the UK government's decision to impose a quarantine on travelers from Spain.
This measure worried investors and caused Ryanair's share on the Dublin Stock Exchange to plunge from 5.96% to 10.25 euros around 09:00 GMT, like those of its competitors in London.
To cope with the shock of the pandemic and a demand that should be depressed for a moment, the group recently announced a restructuring plan which involves the elimination of 3,000 jobs or 15% of its workforce.
Ryanair explains that it has found agreements with unions to reduce wages, such as in the United Kingdom and Germany, which should help limit job cuts.
The group says it has one of the strongest cash in the sector, at 3.9 billion euros, which it preserves by reducing costs and expenses.
In addition, despite the uncertainties about the return to the skies of the Boeing 737 MAX, Ryanair continues to bet on the device which should allow the company to support its growth while limiting polluting emissions and costs.
Ryanair, which should have received its first plane more than a year ago, to have around 40 in its fleet in 2021, now hopes to obtain delivery before the end of 2020.
Ryanair finally specifies that it cannot give a result target for the year and explains that a second wave of Covid-19 in the fall in Europe is its main fear at present.
However, he expects a smaller loss in the second quarter thanks to the recovery in traffic.
Beyond Ryanair, the entire sector is heavily hit by the crisis and in particular its British competitors such as EasyJet and British Airways, which respectively announced 4,500 and 12,000 job cuts.
The most in difficulty so far was Virgin Atlantic, which managed in mid-July to complete a recapitalization plan of 1.2 billion pounds in order to avoid bankruptcy.
© 2020 AFP