Ryanair Reduces its Losses by 88% But Warns that Rates will have to be Kept Low

Ryanair reduced its losses by almost ten (-88.4%) in the first half of its fiscal year (March 31 to September 30, 2021) to 48 million euros, compared to the 411 million it lost in the same period of the previous year,  the fact that the number of passengers doubled when the travel restrictions were lifted. In fact, the Irish low-cost airline made a profit of 225 million euros in the second fiscal quarter, compared to losses of 225.5 million the previous year, which also represents its first quarterly profits since the start of the pandemic.

Passenger traffic increased 128% in the six months from April to September 2021, reaching 39.1 against 17.1 million a year ago. Turnover increased 83% to 2,154.9 million euros. “After a very disturbed first quarter, which saw most Easter flights canceled and a slower-than-anticipated easing of travel restrictions in May and June, traffic rebounded in the second quarter with the successful roll-out of passports. EU covid digital toilets in July, ”said company president Michael O’Leary.

The company expects air traffic to recover in its fiscal year (closed June 30, 2022) to transport 100 million passengers, but at the cost of keeping prices low, especially in the winter season. Despite this recovery, the airline indicates that it will end the year with losses of between 100 and 200 million euros, depending on the evolution of vaccination and the evolution of anticovid-19 measures.

On the other hand, the airline has announced that it is studying the delisting of its shares on the London Stock Exchange and that its titles are only traded on the Dublin Stock Exchange. The company explains that the total volume of securities trading in the London market has fallen significantly in the last year as a result of Brexit, and now only represents 10% of the total.

Ryanair in December banned non-EU citizens, including British citizens, from buying its ordinary shares and removed the voting rights of the holders. In September, it forced the sale of one million shares bought since the breakup, for failing to comply with its property rules. European regulations require a majority of Community capital from airlines operating internal flights within the European area.

Conflict with Portugal
Meanwhile, Ryanair continues to fight almost alone in its battle against the massive state aid that governments are injecting into its former flag carriers. In a statement, he assured that the Covid-19 crisis accelerated the collapse of many European airlines, including Flybe, Norwegian, Germanwings, Level, Stobart and caused “a tsunami of state aid from EU governments. to their insolvent flag companies (Alitalia, Air France / KLM, Iberia, LOT, Lufthansa, SAS, TAP and others) that will distort competition and sustain high, inefficient costs from those companies ”.

The last chapter of that confrontation has taken place in Portugal. The Portuguese Ministry of Transport and the Aviation authority have blocked Ryanair three routes from Portugal to Morocco, forcing the cancellation of the flights that were going to transport 3,000 passengers who had to leave Lisbon.

Ryanair indicated in a statement that this Portuguese decision is a violation of the open skies agreement signed between Morocco and the European Union more than three years ago. The move comes after the Irish airline will accuse the Lisbon government of protecting the public airline TAP by denying Ryanair slots (landing and take-off permits) to operate at the capital’s airport. The canceled flights have nothing to do with those slots and were normally scheduled.

Reviewer overview

Ryanair Reduces its Losses by 88% But Warns that Rates will have to be Kept Low - /10

Summary

Ryanair reduced its losses by almost ten (-88.4%) in the first half of its fiscal year (March 31 to September 30, 2021) to 48 million euros, compared to the 411 million it lost in the same period of the previous year

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