Ryanair Holdings plc reports a loss of £178.03 million in the first half of the financial year.
CEO Michael O’Leary forecasts a further loss in the second half of the year.
At the end of September, the low-cost airline had cash on hand of 4.07 billion pounds sterling.
Ryanair Holdings plc (LON: RYA) said on Monday that passenger numbers fell by around 80% in the first half of the financial year. As a result, the company reported a loss for the six months ended September 30. It was the first time in decades that Ryanair had made a loss in the summer period, when it normally generates the bulk of its profits each year.
The company’s shares fell by more than 1% when the market opened, but rose by almost 4% in the next hour. At £11 per share, Ryanair’s share price is about 50% above the previous year’s low of £7.36 per share in March, when COVID-19 restrictions reached their peak.
Ryanair had started the year with a price of 13.49 pounds per share. Confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you make your choice.
CEO O’Leary predicts a further loss in the second half of the year
The company attributed the decline to the coronavirus pandemic and warned that it could be forced to further reduce capacity in the coming months as the second wave of the novel flu-like virus wreaks havoc in Europe. Ryanair issued shares in September to raise £357 million.
The airline reported a loss of £178.03 million in the first half of the year compared with a profit of £1.04 billion in the same period last year. Analysts had estimated an even higher loss of 220.50 million pounds sterling for Ryanair in the first half of the year.
CEO Michael O’Leary also said on Monday that the loss in the second half of the current financial year would probably be higher than in the first half. Ryanair confirmed its estimate of 38 million passengers for the full year, up from 149 million last year.
Ryanair has cash of 4.07 billion pounds
At the end of September, the Irish airline had £4.07 billion in cash and aircraft worth £6.33 billion. Supplier refunds from Boeing worth £225.92 million also strengthened the company’s balance sheet in the last quarter.
Over the past thirty years, Ryanair has only recorded a full year loss once in 2009. The airline had made a profit that summer that year. Peer, EasyJet, also said on Monday that it was looking for financing to combat the economic blow of the COVID 19 crisis.
At the time of writing this article, the European low cost airline is estimated at 12.15 billion pounds.