Ryanair posts first quarter net loss of €273 million

©Ryanair

COVID-19 continued to wreak havoc on Ryanair’s business during the first quarter of 2021, with most Easter flights cancelled and a slower-than-expected easing of EU Government travel restrictions into May and June. Significant uncertainty around travel green lists (particularly in the U.K.) and extreme Government caution in Ireland meant that first-quarter bookings were close-in [DD1] and at low fares.  The July 1 rollout of EU Digital COVID Certificates (DCCs) and the scrapping of quarantine for vaccinated arrivals to the U.K. from mid-July has seen a surge in bookings over recent weeks.  Pricing remains below pre COVID-19 levels.

First-quarter scheduled revenue increased 91% to €192 million due to a rise in traffic from 0.5 million to 8.1million (at a 73% load factor). While traffic recovered significantly (compared to the prior year’s first quarter), the cancellation of Easter traffic and the delayed relaxation of Government travel restrictions across the EU into May and June required significant price stimulation. Ancillary revenue performed well, generating approx. €22 per passenger, as more guests choose priority boarding and reserved seating. As a result, total revenue increased by almost 200% to over €370 million. Ryanair reported first-quarter net loss at €273 million, compared to €185 million in the first quarter of 2020. 

A sevenfold increase in sectors saw operating costs increase 116% to €675 million, driven primarily by variable costs such as fuel, airport, handling, and route charges. The Group’s fuel requirements are just under 60% hedged for FY22 at US$565 per metric ton and approx. 35% hedged for FY23 at US$600. Carbon credits are fully hedged for FY22 and approx. 35% hedged for FY23 at under €24 per EUA (compared to forward rates of over €50). €1.00 = US$1.18 at time of publication.

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