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Covid-19 : the company Ryanair has lived the quarter of the most difficult in its history

The group explains that a second wave of Covid-19 in the autumn in Europe is his main fear at the present time. The irish-based airline Ryanair has fallen into

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Covid-19 : the company Ryanair has lived the quarter of the most difficult in its history

The group explains that a second wave of Covid-19 in the autumn in Europe is his main fear at the present time.

The irish-based airline Ryanair has fallen into the red between April and June, in the course of the quarter "the most difficult in its history", because of the paralysis of air traffic caused by the pandemic.

The carrier to low-cost announced in a press release on Monday, having suffered a net loss of 185 million euros in the first quarter of its fiscal year shifted. The group says never to have had a quarter so unfavorable during its 35-year history. There is a limit, however, a little breakage after having warned in may that its loss could reach 200 million euros over the period.

The number of passengers transported has been reduced almost to nil 0.5 million, compared to $ 42 million in the first quarter a year earlier when it had made a net profit of 243 million euros.

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The containment and the closure of the borders in Europe have put a screeching halt to the air traffic from mid-march, so that, until June, more than 99% of the planes of Ryanair remained on the ground. Its turnover collapsed to 125 million euros, compared to 2,312 billion a year earlier.

A 60% decrease of number of passengers year-on-year

Ryanair has resumed its flights from the 1st of July, a crucial time with the holiday and the month in which the company is expected to turn 40% of its usual abilities, before you get on the power and reach 70% in September.

The company transported 60 million passengers on all of its fiscal year 2020-2021 (ended at the end of march), a decrease of 60%.

The group is also once again prevailed against the State subsidies that have benefited some airlines in Europe and distort the competition according to him. "The management has taken steps to reduce costs in the long term, but is afraid that it is not enough to compete with the companies which received the support of government," points out William Ryder, an analyst at Hargreaves Lansdown. "In any case, what counts most is a recovery in demand by the next summer," adds he.

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But in the shorter term, its programme of recovery could be disrupted by the decision of the british government to impose a quarantine for travelers from Spain.

This measure worried investors and was a dive of 5,96% of 10.25 euros, the title of Ryanair on the stock Exchange of Dublin at around 9 o'clock local, such as those of its competitors in London.

To cope with the shock of the pandemic and a request that should be depressed for a time, the group has recently announced a restructuring plan that goes through the removal of 3,000 jobs, or 15 percent of its workforce.

The fear of a second wave

Ryanair says he has reached agreements with unions to reduce wages, such as the United Kingdom and Germany, which should help to limit job cuts. The group is said to have of cash among the most robust in the industry, with 3.9 billion euros, which it preserves by reducing costs and expenses.

In addition, despite the uncertainties on the return in the sky for the Boeing 737 MAX, Ryanair continues to build on the device, which should allow the company to support its growth while limiting pollution emissions, and costs. Ryanair, which was due to receive its first aircraft there is more than one year, to have approximately 40 in their fleet by 2021, hope now to get delivery before the end of 2020.

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Ryanair accurate finally not be able to provide objective results on the exercise and explains that a second wave of Covid-19 in the autumn in Europe is his main fear at the present time. It is expected, however, to a loss-less heavy in the second quarter thanks to the recovery of the traffic.

beyond Ryanair, it is the whole sector which is severely hit by the crisis and, in particular, its competing british as EasyJet and British Airways who have announced, respectively, 4500 and 12 000 job losses.

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The more challenges until there was Virgin Atlantic, which arrived in mid-July to complete a recapitalisation plan of 1.2 billion pounds in order to avoid bankruptcy.

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