Ryanair forecasts record annual loss as COVID-19 'wreaks havoc'
Ryanair said on Monday it may lose close to 1 billion euros ($1.21 billion) in its current financial year, by far its worst ever performance, but Europe’s largest low-cost carrier said the crisis would create significant growth opportunities, Reuters reports.
The Irish airline said it expects to post a loss of between 850 and 950 million euros in its current financial year, which ends on March 31, around 5 times larger than its previous record annual loss posted in 2009.
“COVID-19 continues to wreak havoc across the industry,” the airline said in a statement. “FY21 will continue to be the most challenging year in Ryanair’s 35 year history.”
COVID-19 restrictions slashed Ryanair passenger numbers by 78% in the last three months of the year, the third quarter of its financial calendar, pushing it to a quarterly loss of 306 million euros.
That compares with a loss of 300 million euro forecast in a company poll of analysts.
Ryanair posted a fall of 82% in revenue in the final three months of 2020, compared with falls of 88% at rival easyJet and 77% at Wizz, which both reported results last week.
Ryanair is widely seen as one of the best-placed airlines in the world to weather the COVID-19 crisis due to its large cash balance and lack of long-haul and business-class.
It said it had cash on hand of 3.5 billion euros at the end of December, compared with 4.5 billion at the end of September.
Its shares closed on Friday at 14.3 euros, down 15% from its pre-COVID peak of 16.9 euros on Jan. 10 last year.
The airline reaffirmed its forecast it would fly between 26 million and 30 million passengers in the year to end-March compared with 149 million in its previous financial year. But it warned there was “more risk towards the lower end of the range.”