Ryanair hopes that the vaccine rollout will eventually facilitate return to normalcy.
Ryanair Holdings Plc (NASDAQ: RYAAY) is expecting a net loss of up to €950 million in its 2021 fiscal year, which ends in March. Already, the company reported a net loss of €225.5 million in Q2 2020 and a further loss of €306 million in Q3 2020 which ended in December.
Ryanair Loss May Increase
On the 1st of February, Ryanair said its 2021 fiscal year would “continue to be the most challenging” in its 35-year history. The past and expected loss is due to travel restrictions issued by the governments amid the unprecedented global health crises. In 2020, governments tied airlines from operation for several months due to COVID-19. The recent increase in new COVID-19 cases has resulted in fresh lockdowns in some countries, while many others have intensified restrictions on traveling to curb the spread of the coronavirus.
In a statement, Ryanair expressed its displeasure with the negative effect of the unprecedented health crisis in the airline industry. He said:
“Covid-19 continues to wreak havoc across the industry.”
During the festive period, the company also mentioned that Christmas and New Year traffic “was severely impacted” with bans on flights leaving the UK. At the time, European governments imposed restrictions on airlines taking-off from the UK in reaction to the news of a new variant of COVID-19 discovered in the country. In the quarter. The number of passengers fell to 8.1 million, a 78% decline over the 35.9 million passengers recorded in the previous year over the same period. Ryanair saw an 83% drop in traffic in just December.
Ryanair has plunged 13.56% in its year-to-date record. The company also declined nearly 10% over the past month and has lost 5.20% in the last five days. Data provided by MarketWatch revealed that Ryanair gained 3.34% over the past year and advanced about 15% in the last three months.
Furthermore, Ryanair expects that the new lockdowns in selected countries and the mandated pre-arrival coronavirus test will “reduce flight schedules and traffic through to Easter.”
Ryanair Takes ‘Comfort from the Success of the UK Vaccine Programme’
As an effort to counter the coronavirus, European governments are planning to provide vaccines to the people. Ryanair hopes that the vaccine rollout will eventually facilitate normalcy. The company revealed:
“We take some comfort from the success of the UK vaccine programme, which is on target to vaccinate almost 50% of the UK population (30 million) by the end of March. The EU now needs to step up the slow pace of its rollout programme to match the UK performance.”
Despite the recent losses caused by the pandemic, Ryanair is planning to expand in Italy. Specifically, the company is expanding in Treviso, Venice, Verona, Naples, and Bari. Ryanair also plans to reopen its base at Shannon in 2021 summer.
Ryanair is currently at after-hours trading of $95.07, the same as its previous close.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
