Ryanair reports Q1 loss Of €273m as easter travel cancelled vaccine rollouts

posted on 26th July 2021 by Eddie Saunders
Ryanair reports Q1 loss Of €273m as easter travel cancelled vaccine rollouts

Ryanair Holdings plc today (26 July) reported a Q1 loss of €273m, compared to a PY Q1 loss of €185m. Features of this Q1 performance included:

  • Q1 traffic rebounded from 0.5m to 8.1m as capacity recovered in May & June.
  • 1st B737-8200 “Gamechanger” delivered in June (12 for peak S.21).
  • Strong June cash balance of €4.06bn (up from €3.15bn at 31 Mar.).
  • €1.2bn 5-year unsecured bond issued in May at record low 0.875% coupon.
  • Net debt fell from €2.28bn at 31 Mar. to €1.66bn at 30 June (€850m bond repaid in June).
  • 379 new routes & 10 new bases announced for 2021.
  • Customer Advisory Panel appointed – 1st meeting in Sept.

Ryanair Holdings Group CEO, Michael O’Leary, said: “Covid-19 continued to wreak havoc on our business during Q1 with most Easter flights cancelled and a slower than expected easing of EU Govt. travel restrictions into May and June.  Significant uncertainty around travel green lists (particularly in the UK) and extreme Govt. caution in Ireland meant that Q1 bookings were close-in and at low fares.

“Ryanair has repeatedly shown we can grow traffic while reducing our impact on the environment.

“Every passenger that switches to Ryanair from Europe’s legacy airlines reduces their CO₂ emissions by almost 50% per flight.  Over the next 5-years our traffic will grow to 200m p.a.

“Q1 scheduled revenue increased 91% to €192m due to a rise in traffic from 0.5m to 8.1m (at a 73% load factor).

“While traffic recovered significantly (compared to PY Q1), the cancellation of Easter traffic and the delayed relaxation of Govt. travel restrictions across the EU into May and June required significant price stimulation.

“Ancillary revenue performed well, generating approx. €22 per passenger, as more guests choose priority boarding and reserved seating.  As a result, total revenue increased by almost 200% to over €370m in Q1.

“A sevenfold increase in sectors saw operating costs increase 116% to €675m, driven primarily by variable costs such as fuel, airport & handling and route charges.

“As we look beyond the Covid-19 recovery, and the successful completion of vaccination rollouts, the Ryanair Group expects to have a materially lower cost base, a very strong balance sheet and industry leading traffic recovery”.