Ryanair Slams UK Government's Covid-19 Response and Halves Passenger Forecast

Strategic Insights -

Ryanair's chief executive Michael O'Leary has strongly criticized the UK government's handling of the Covid-19 crisis, calling their transport policy "idiotic and unimplementable". The airline has significant concerns about the planned 14-day quarantine period for international travelers, stating it will have a devastating impact on bookings. As a result, Ryanair has halved its passenger forecast for the year to 80 million, down from 154 million.

Key Takeaways:

  • Ryanair's passenger forecast for the year has been halved to 80 million, down from 154 million due to the impact of the pandemic.
  • The airline has tapped into Britain's corporate loan programme, raising £600m, and has a cash reserve of €4.1bn (£3.7bn).
  • Ryanair's CEO Michael O'Leary accused the UK government of mismanaging the crisis, stating they are "making this stuff up as they go along".
  • The airline expects to restart 40% of its flights in July, operating almost 1,000 a day, but plans to carry no more than half of its original target of 44.6 million passengers between July and September.
  • Ryanair is considering base closures, cutting 3,000 jobs, and reducing pay by 20% due to the pandemic.
  • The airline has described over €30bn in state aid received by other carriers as "unlawful", arguing it breaches EU state aid and competition rules.
  • Ryanair's profit for the year to 31 March was €1bn, up from €885m the previous year, but the pandemic cost the airline €40m in lost profits.

Statistics:

  • €4.1bn (£3.7bn): Ryanair's cash reserve.
  • €600m: Amount raised from Britain's corporate loan programme.
  • €40m: Estimated lost profits due to the pandemic.
  • €200m: Expected loss for the first quarter of the year.
  • 80 million: Revised passenger forecast for the year.
  • 154 million: Original passenger forecast for the year.
  • 44.6 million: Target number of passengers for July to September (previously expected to be carried).
  • 30%: Reduction in passenger capacity due to public health restrictions.

Sources:

  • BBC Radio 4's Today programme.
  • The Guardian's Jonathan Moules.
  • Ryanair's investor statement.