3rd Apr 2020 08:22
(Alliance News) - Budget airline Ryanair Holdings PLC said Friday it expects profit for its recently ended financial year to remain within its guidance range, albeit at the lower end, as traffic for March fell due to airspace closures related to Covid-19.
For the year ended March 31, post-tax profit before exceptional items is set to be at the lower end of the guidance range between EUR950 million and EUR1.00 billion, compared to EUR1.02 billion the year before.
Ryanair said the expected weaker performance was due the response of EU governments to the spread of the Covid-19 virus, which has included flight bans and travels restrictions.
For March alone, when the restrictions were first imposed, the group's passenger numbers plunged 48% year-on-year to 5.7 million from 10.9 million. The Ryanair core airline's numbers were also down 48%, to 5.5 million, while the newer Lauda division in Austria saw a 50% drop to 200,000 passengers.
On a rolling annual basis, the group's passenger numbers edged up by 4% to 148.6 million.
Looking ahead, Ryanair said it expects its fleet to remain largely grounded for at least April and May, which will lead to the group recording ineffectiveness of its fuel hedges for the 2021 financial year as an exceptional item for its 2020 results.
The Irish company said it is unable to give guidance for the 2021 financial year.
Ryanair said it has a strong balance sheet, with year-end cash equivalents of EUR3.8 billion and 77% of its owned fleet unencumbered and debt free.
It has already implemented several measures to cut operating costs and improve liquidity, including aircraft grounding, share buyback suspensions and cutting all pay by 50% for April and May.
"We are grateful to many EU governments for their foresight and speed of response in recognising that the EU airlines are one of the most exposed industries to the Covid-19 pandemic and that our flights have been grounded by necessary government restrictions to combat the spread of Covid-19. However, we equally support the EU Commission's position that any such government supports must comply with all EU State Aid and Competition rules," Ryanair stated.
Shares in Ryanair were down 0.3% at EUR8.52 on Friday in London.
By Dayo Laniyan; [email protected]
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