Ryanair posts €273m Q2 2021 pandemic driven lossEuropost
The budget carrier Ryanair announced mounting financial losses as new Covid-19 variants provoked the enforcement of new travel restrictions and raised concerns among international tourists. The Irish carrier said it still hoped to break even from the downturn sometime by the end of 2021, CNBC reported.
Ryanair confirmed 273 million euros loss in the second quarter of 2021 as lockdowns meant most flights over the Easter period were canceled and with European nations being cautious over the easing of travel restrictions. The Q2 2021 results beat an earlier forecast from analyst.
In comparison, the airline posted a 185 million euro loss over the same period a year ago. “Covid-19 continued to wreak havoc on our business,” Ryanair CEO Michael O’Leary said in a statement.
At the same time, operating costs also increased, deteriorating the company’s balance sheet. Over the year to June, costs rose by 116%, driven mostly by fuel, airport and route charges. However, O’Leary expects traffic to pick up in the coming months.
“We expect traffic to rise from over 5 million in June to almost 9 million in July, and over 10 million in August, as long as there are no further Covid setbacks in Europe,” he said. Still the outlook is highly dependent on the pandemic and successful vaccination campaigns. In EU some 46% of the adult population is fully vaccinated against Covid-19. In the U.K., that number is 54.4%.