Ryanair CEO Expects Airline to Face Small Loss for the Next 12 Months
--Ryanair's CEO said he expects the airline to carry 80-100
million passengers in the next 12 months, just below its break-even
--Ryanair expects a short-haul rebound in the second half of
2021 but no long-haul recovery until 2023
--Ryanair expects a cut of up to 25% in European flight capacity
after the pandemic
By Anthony O. Goriainoff
Ryanair Holdings PLC's Chief Executive Michael O'Leary has said
he expects the airline to bear a modest loss for the next 12 months
and that passenger numbers and load factors won't fully recover
until the quarter ending March 2023.
Mr. O'Leary said Wednesday during a recorded interview with the
Financial Times on the impact of Covid-19 on the aviation industry
that he expected the low-cost carrier to break even in the year to
March 2022 if it carried over 100 million passengers but said this
was dependent on traffic recovery. However he expects the airline
to carry from 80 to 100 million over the next 12 months.
Mr. O'Leary said he believed Europe's large tourism economies
--Spain, Italy, Portugal and Greece-- would likely accept
vaccination receipts, either in digital or paper format. He added
that PCR tests will quickly become redundant once Europe, and the
U.K., have from 60% to 80% of the adult population vaccinated,
which he believes will take place from mid-May onwards.
Mr. O'Leary also said he believed there will be a strong rebound
in travel in the July to September quarter due to pent-up demand.
He also said that given current booking trends he foresaw a
sustained period of low prices through the remainder of April and
The airline executive also said he expects long-haul business
and leisure travel to see a slower recovery.
"I think we need to wait until summer 2023; it will lag behind
short haul by about another 12 months, but travel will recover, and
will be priced to recover," Mr. O'Leary said.
Regarding the biggest long-term effect of the pandemic in
aviation, Mr. O'Leary said there would be a significant reduction
of capacity in Europe. He said that Europe will see 20% to 25% less
capacity when it returns from Covid-19 in 2022 or 2023, and that
there was a risk that this would lead to higher prices "unless
airlines like Ryanair accelerate our growth and add capacity into
When asked about the likelihood of people flying less due to
environmental concerns post-Covid-19 he said that he didn't believe
in "flight shaming".
"We see no reason why in the next five years we won't grow from
150 million passengers pre-Covid to 200 million passengers anyway,"
Write to Anthony O. Goriainoff at
(END) Dow Jones Newswires
April 22, 2021 08:56 ET (12:56 GMT)
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