Due to the restrictions imposed to curb the number of COVID-19 infections, Ryanair number of passengers fell 78% in the past three months of fiscal 2021, which led to a quarterly loss of €306 million. The figures are higher than the €300 million forecasted by the company. In the current financial year, the company expects to lose roughly €1 billion.
Ryanair announced that it would fly around 26 million to 30 million people by the end of fiscal 2021, significantly less than the 149 million reported in the previous year. It expects a high of 120 million passengers to fly by in March 2022.
Despite the significant losses, Ryanair is seen as one of the best-placed air carriers globally, as it still got strong cash balance, and it lacks long-haul and business-class.
For the future, Ryanair expects this fiscal year to be “the most challenging” in its more than three decades of existence. Its budged it is so far in line with the net loss of €850 million and €950 million. However, the company’s CEO Michael O’Leary stated that a “dramatic recovery” is in sight this summer as more and more people are getting a vaccine against COVID-19.
Since the beginning of the year until the moment of writing, Ryanair stock price lost 12%.
Source: reuters.com
