Low fares and high costs have increased the airline’s losses due to travel restrictions and uncertainties.
Irish airline Ryanair reported losses of 273 million euros in the first quarter due to low fares and high costs due to travel restrictions and uncertainties.
Carrier “Low Coast” says total losses have increased by 47 percent in one year over the three months ending June. Turnover nearly tripled to 1 371 million.
The number of passengers resumed from April to the end of June was 8.1 million more than last year, when strict restrictions were imposed in many European countries and the United Kingdom.
However, operating costs also increased significantly (+ 116%), increasing the group’s losses.
“The Covid-19 epidemic hit our business hard in the first quarter, canceling most Easter flights and slowing down more than expected from EU travel restrictions.” Company boss Michael O’Leary commented.
“Significant uncertainties surrounding the countries’ green lists, which allow travel with limited health restrictions, have led to an increase in bookings in the first quarter, especially in the UK, due to the extreme caution of the Irish government. Visibility is low and prices are low,” he added.
With the removal of travel restrictions, we recruited additional cabin crews in the second quarter to allow us to increase our service faster, ”he added. This led to an increase in costs.
He said the launch of EU certificates on July 1 and the waiver of the shipping ban on vaccinated people arriving from the UK in mid-July had led to a jump in bookings in recent weeks.
Thanks to the summer holidays, the company expects to double the number of passengers at a reduced rate from 5 million in June to 9 million in July and 10 million in August, “if there are no new ancillary issues, to Kovid”.
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