The airline reported a third quarter loss for the three month period ending December 21, 2020 of €306 million, compared to a profit of €88 million for Q3 2019. Quarterly revenue declined 82 percent year-over-year to €340 million.
On Monday (February 1, 2021), Ryanair reported a third quarter net loss of €306 million on an 82 percent year-over-year decline in revenue to €340 million. Third quarter traffic at the low-cost carrier fell 78 percent compared to Q3 2019 from 36 million to 8.1 million guests. Third quarter load factor fell 26 percent year-over year to 70 percent. During the quarter the airline extended their low-cost growth deal at London-Stansted by four years to 2028 and secured seven easyJet slots. Additionally, Ryanair placed a firm order for 75 Boeing 737-8200s, increasing their order book to 210 firm orders for the type. The new aircraft complement the airline’s overall cost reduction strategy with four percent more seats, a 16 percent reduction in fuel burn and a 40 percent reduction in noise footprint.
This winter, the Group’s airlines will return 14 older Boeing 737s to lessors and the company has also completed the delivery of seven older B737NGs which were pre-sold in 2019 for freighter conversion. During the third quarter the Group also announced a new two aircraft base at Paris-Beauvais, added a fourth aircraft to its Naples base, announced a four aircraft base at Venice-Treviso and increased their network at Venice-Marco Polo, Verona and Bari. Ryanair also confirmed the reopening of their Shannon, Ireland base for the second half of 2021.
Ryanair retains one of the strongest balance sheets in the industry with a BBB rating from both S&P and Fitch, and €3.5 billion in cash as of December 31, 2020. Approximately 80 percent of the company’s fleet is also unencumbered with a book value of over €7 billion. Ryanair has lowered cash burn substantially since March 2020 through cost cutting measures, participating in EU Government payroll support schemes, cancelling share buybacks and deferring all non-essential CAPEX. The airline will take delivery of their first B737-8200 during Q4 and plans to repay €1.4 billion in maturing debt over the next six months.
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 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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