By Conor Humphries DUBLIN, Nov 2 (Reuters) - Eire's Ryanair
By Conor Humphries
DUBLIN, Nov 2 (Reuters) – Eire’s Ryanair Holdings PLC RYA.I on Monday posted a loss for its key summer season interval for the primary time in a long time, and warned that the COVID-19 disaster may pressure additional cuts and go away capability subsequent summer season as little as half of regular ranges.
Europe’s largest low-cost airline mentioned COVID-19 restrictions had pushed passenger numbers down 80% within the six months ended Sept. 30, when it usually makes most of its annual revenue.
As an alternative, it posted a lack of 197 million euros ($230 million) for the primary half of its monetary yr, from a revenue of 1.15 billion within the year-ago interval. An organization ballot of analysts had on common forecast a lack of 244 million euros.
The airline, whose Chief Government Michael O’Leary in September described the upcoming winter as a “write-off”, declined to forecast revenue for the complete monetary yr ending March 31, however mentioned it anticipated a second-half loss better than the primary.
Ryanair reaffirmed plans to fly 38 million passengers this monetary yr in contrast with the 149 million final yr, however warned that the quantity may fall additional “if EU governments proceed to mismanage air journey and impose extra uncoordinated journey restrictions”.
Air visitors throughout Europe could possibly be as a lot as 75% decrease than regular this winter, O’Leary mentioned in a pre-recorded presentation.
Ryanair is planning to fly between 50% and 80% of its regular capability subsequent summer season, relying on how the pandemic develops, he mentioned.
Ryanair, which has one of many airline trade’s strongest steadiness sheets, mentioned it had money available of 4.5 billion euros at September-end and plane price about 7 billion euros.
It mentioned its money steadiness was supported by a 250 million euro provider reimbursement from Boeing within the July-September quarter.
The airline has solely posted one annual loss prior to now 30 years, in 2009. It nonetheless made a small revenue in the summertime of that yr.
BOEING TALKS ‘ADVANCED’
Ryanair mentioned it had but to finalise phrases with Boeing Co BA.N on compensation for the 18-month delay of deliveries of the grounded 737 MAX jet. It mentioned it hoped to obtain at the very least 30 MAX jets in time for its peak summer season season subsequent yr.
Chief Monetary Officer Neil Sorahan informed Reuters that Ryanair was additionally speaking with Airbus, however added that talks with Boeing have been “extra superior.”
Citi analyst Mark Manduca mentioned in a word that the outcomes for the primary half have been barely higher than anticipated, nevertheless, the latest imposition of COVID-19 lockdowns in Europe was prone to be the important thing driver for Ryanair and the EU aviation sector within the close to time period.
($1 = 0.8597 euros)
(Reporting by Conor Humphries; Enhancing by Christopher Cushing and Sherry Jacob-Phillips)
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