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Ryanair Reports Annual Net Loss of €815 Million on 81 Percent Revenue Decline to €1.64 Billion

Ryanair has reported a full year net loss of €815 million on a year-over-year revenue decline of 81 percent to €1.64 billion. During the previous fiscal year ending March 31, 2020, the carrier reported a net profit of €1.0 billion.


Ryanair Reports Full Year FY21 Financial Results - Courtesy Ryanair

On Monday (May 17, 2021), Ryanair Holdings plc reported their full year earnings for fiscal year ending March 31, 2021. The carrier reported an annual net loss of €815 million (excluding fuel hedging ineffectiveness) on a year-over-year decline in revenue of 81 percent to €1.64 billion. During the previous fiscal year, Ryanair reported a net profit of €1.0 billion. The airline’s traffic for the year fell 81 percent from 149 million in FY20 to 27.5 million due to COVID-19 related travel restrictions. At March 31, 2021, Ryanair had €3.15 billion in available cash. The company also increased their firm order for Boeing 737-8200 “Gamechanger” aircraft from 135 to 210.


During FY21 ancillary revenue per passenger was up 11 percent to nearly €22, with more guests choosing priority boarding and reserved seating. For the fiscal year, Ryanair recorded a €200 million charge on fuel and currency hedges, largely attributable to reduced traffic and aircraft delivery delays. The company also extended long-term growth deals with airport partners including London Stansted (to 2028), Milan Bergamo (to 2028) and Brussels Charleroi (to 2030).


Ryanair also reached an agreement with Boeing for reasonable and fair compensation related to the two year delivery delay on previously ordered 737-8200s (737-8 MAX) aircraft. The airline believes that these “Gamechanger” aircraft will further widen the cost gap between Ryanair and all other European carriers for the next decade. The 737-8200 offers four percent more seats, a 16 percent reduction in fuel burn and a 40% lower noise footprint versus previous generation aircraft. Ryanair expects to receive their first Gamechanger at the end of May and to receive a total of over 60 by peak summer season 2022. The company believes the aircraft will help them reach their goal of carrying 200 million passengers annually over the next five years.


As previously mentioned, Ryanair had €3.5 billion in cash at March 31, 2021, and maintains one of the strongest credit ratings in the industry with a BBB rating at both S&P and Fitch. Additionally, more than 85 percent of Ryanair's Boeing 737 fleet is unencumbered. Over the last year, the company also successfully raised approximately €1.95 billion in new financing, including €400 million via share placement, an €850 million Eurobond and £600 million from the Bank of England’s Covid Corporate Financing Facility (CCFF).


Ryanair Holdings, plc is Europe’s largest airline conglomerate and the parent company of Buzz, Lauda, Malta Air, and Ryanair DAC. The airline usually carries over 154 million passengers annually with over 2,500 daily departures. Ryanair typically serves over 200 destinations in 40 countries with a fleet of over 400 Boeing 737 Family aircraft and 20 Airbus A320s. Currently, the low-cost carrier has an additional 210 Boeing 737-8200s on order. Ryanair has maintained a stellar safety record for over 35 years and prides itself on being “Europe’s greenest cleanest airline group,” promising customers a reduction in CO2 emissions of up to 50%, versus the “Big 4 EU major airlines.”



Source: Ryanair

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