RYAAY Ryanair Holdings PLC

By Anthony O. Goriainoff

-- Ryanair may cut up to 3,000 mainly pilot and cabin crew jobs and plans for pay cuts of up to 20%

-- The low-cost airline will close bases across Europe until traffic recovers

-- It expects a net loss of more than EUR100 million in 1Q of fiscal 2021

Ryanair Holdings PLC said Friday that it will start a restructuring and job loss program from July in response to the coronavirus crisis, which may result in the loss of up to 3,000 mainly pilot and cabin crew jobs.

The budget airline said the plan also calls for unpaid leave, pay cuts of up to 20%, and the closure of a number of bases across Europe until traffic recovers.

The news comes hot on the tail of British Airways' announcement on Tuesday that it is laying off as many as 12,000 staff after its parent company International Consolidated Airlines Group SA posted an operating loss of 535 million euros ($583.0 million) for the first three months of the year.

Ryanair said it expects to report a net loss of more than EUR100 million for the first quarter of fiscal 2021 due to the virus, and that Chief Executive Michael O'Leary will extend his 50% pay cut for the remainder of the financial year to March 2021.

The low-cost airline said it expects further losses in the second quarter and that it is reviewing its growth plans and aircraft orders.

The company said it is in active negotiations with Boeing and Laudamotion's A320 lessors to cut the number of planned aircraft deliveries over the coming 24 months.

It said it expects to carry no more than 50% of its original traffic target of 44.6 million in the second quarter, and less than 100 million passengers in the year ending March 2021, more than 35% below its original target of 154 million.

"Ryanair now expects the recovery of passenger demand and pricing--to 2019 levels--will take at least 2 years, until summer 2022 at the earliest," the company said.

Shares at 0710 GMT were down 3.6% at EUR9.95.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

May 01, 2020 03:47 ET (07:47 GMT)

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