Ryanair loses 815 million in its fiscal year compared to the profit of 1 billion the previous year

Irish low cost airline Ryanair reported this Monday that it recorded net losses of 815 million of euros in its last fiscal year (until March 31), compared to to the net profit of 1,002 million euros for the same period of the year anterior.

In a statement sent to the London Stock Exchange, the company indicated that travel restrictions imposed by the coronavirus pandemic caused a drop of 81% in its income, to place the turnover at 1,640 million euros.

The health crisis also hit its passenger traffic hard, which fell to 27.5 million, 81% less than in the year fiscal 2019-20.

Ryanair noted in the note that last year has been “the most difficult “in its 35-year history, as a result of a” collapse of “customer traffic that occurred,” practically, overnight tomorrow “, after” many governments, almost without warning or coordination, “imposed” flight bans, travel restrictions and national confinements “.

Looking ahead to this new fiscal year, the airline anticipates that it could transport between 80 and 120 million passengers, despite the fact that in its first quarter it will barely register a traffic of around five or six million.

In this context of uncertainty, Ryanair warned that it is “impossible” make a “normal” forecast on upcoming annual results, although he was confident that he could approach the profitability threshold “if the vaccination process in the European Union continues its course “.

The company’s CEO, Michael O’Leary, stated in an introductory video showing the recent surge in flight bookings suggests that “recovery has begun.”

Weekly ticket bookings, he said, have increased since 500,000 at the beginning of April to 1.5 million now.

“Yes, as the forecasts point out, the majority of the European population is vaccinated in September, we think we can expect a strong recovery “in the second half of the year, from October to March, assured O’Leary.

The manager also highlighted that the losses of 815 million euros are slightly lower than previously expected, when they stood at 834 million euros.

“It is better than we expected, but it is still a loss traumatic for an airline that has consistently made profits during our 35-year history, “added O’Leary.

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