Irish low-cost airline Ryanair still expects to make a profit ranging between €950 million to €1 billion for the fiscal year of 2020 despite taking a hit due to the COVID-19 Pandemic in the first quarter of 2020. While most airlines are fearing bankruptcy, Ryanair is one of the very few that is still expecting a profit, even if it is on the lower side of their estimate.
The airline has grounded a majority of its fleet and expects its fleet to stay this way throughout April and May. Ryanair is flying only twenty flights daily as opposed to the 2500 daily flights it flew before the pandemic. The airline expects ineffectiveness for the fiscal year 2021 due to the Coronavirus and a rise in fuel costs. However, because of the uncertainties in the industry currently, the have said that they cannot provide profit guidance for the year 2021-22 but expects to take a €300Million hit directly.
“Ryanair has one of the strongest balance sheets in the industry, with year-end cash equivalents of €3.8 billion and 327 (77 percent) of the group’s owned fleet unencumbered and debt free.” Said the airline to the Irish Stock Exchange last week.
Ryanair has one of the strongest balance sheets and cash balances in Europe, which will help the LCC survive the pandemic. However, the airline has already slashed costs and taken measures to protect liquidity. Ryanair has suspended share buybacks, grounded aircraft, froze recruitment, and cut all pay as they frantically try to retain their key investors.
A statement from Ryanair said: “We are engaging with our people and our unions across all EU countries to agree payroll support mechanisms as they are put in place by EU governments.”
Ryanair is one of the largest Low-Cost Carriers in the world and Europe, and with a fleet of over 280 aircraft serving 225 destinations, there is no doubt Ryanair will be surviving this world crisis.