Trip Bounty

Ryanair reduces transport capacity to 40%

Ryanair reduces transport capacity to 40%

The Irish air operator has reported that it will fly about 40 per cent of the capacity it flew in October 2019, compared with the original 50 per cent plan.

The company called for the rapid implementation of a coordinated restriction system at EU level.
Europe’s air operators argue that the lack of a coordinated restriction system and common quarantine regulations affects the recovery of the aviation industry, which has been significantly affected by the pandemic.
Last week, Ryanair reduced its passenger target to 50 million in the financial year to end next year, from the 60 million announced in July.

In the 2020 financial year, the company carried 149 million passengers.
Ryanair now expects 50 million passengers in the financial year ending March 31, 2021, chief executive Michael O’Leary explained, criticising the way governments are currently handling the coronavirus pandemic crisis.
And ticket prices will also be “significantly reduced,” said the Ryanair boss, who expects the 2020 winter season “to be a failure.” In winter, Ryanair’s passenger numbers would be around five million, O’Leary predicted. He added that the company wants to close more bases and reduce its activity in countries where the pandemic is out of control.

Ryanair is cutting estimates of passenger numbers and significantly making tickets cheaper amid the pandemic

In the 2020 financial year, the company carried 149 million passengers.
Ryanair now expects 50 million passengers in the financial year ending March 31, 2021, O’Leary explained, criticising the way governments are currently handling the crisis caused by the coronavirus pandemic.
And ticket prices will also be “significantly reduced,” said the Ryanair boss, who expects the 2020 winter season to be “a failure,”

In winter, Ryanair’s passenger numbers would be around five million, O’Leary predicted. He added that the company wants to close more bases and reduce its activity in countries where the pandemic is out of control.
In May, Ryanair announced it would give up 3,000 employees in Europe.
On Wednesday morning, Ryanair shares fell 2.4 per cent to 11.34 euros.

Ryanair announces lower losses than originally estimated, after the pandemic blocked all planes on the ground:

Between April and June 2020 the Irish air operator had tax losses of 185 million euros ($216.54 million), the first losses ever recorded in the quarter, but lower than analysts expected – 232 million euros.
In the second quarter of 2019 Ryanair reported a profit of 243 million euros.

Passenger numbers fell by about 99 percent in the second quarter, which was “the most difficult in Ryanair’s 35-year history,” the company said in a statement.
Revenues declined 95 per cent to 125 million euros, while costs fell 85 per cent, Ryanair reported.

On Friday, Ryanair shares closed to 10.91 euros and this year fell 25 percent, a decline sharper than low-cost rival Wizz Air’s just 11 percent.

In May, Ryanair announced it would give up 3,000 employees in Europe.

Low-cost airline giant Ryanair, kneeling by coronavirus. Dismantle3,000 jobs and massively cut wages

According to a statement from the operator, in addition to the 3,000 jobs that will be disbanded, the remaining employees will receive 20% lower salaries in an effort to recover from the massive losses generated by the coronavirus pandemic, which has affected the global aviation.

“Ryanair will shortly notify unions of the restructuring and job reduction programme, which will start in July 2020,” a statement from the operator to investors reads.
The company has also announced that it plans to close more bases in Europe until air traffic on the mainland returns to normal.

According to the company, the recovery of passenger numbers and demand reached before the outbreak of the pandemic will take at least two years, “at the earliest” until the summer of 2022.
Ryanair, the largest low-cost airline in Europe by number of passengers, operated before the pandemic 21 routes from the airports of Romania, respectively Bucharest and Craiova.

A similar move was taken by airline Wizz Air, which recently announced it would eliminate 1,000 jobs and cut wages for the rest of its employees, in the context of efforts to limit the financial impact of the coronavirus pandemic.

Wizz Air, the largest low-cost airline in Central and Eastern Europe, said the 1,000 jobs eliminated account edit the equivalent of 19% of its staff. Wages of pilots, attendants and office staff will also be reduced by an average of 14% on average. Director-General József Váradi and the other members of the Board of Directors will suffer a 22% decrease in salaries.

At the end of March, Ryanair announced that it would no longer operate flights in April and May due to restrictions on braking the coronavirus pandemic, bringing its entire fleet to the ground.