Due to the coronavirus pandemic, Irish airline Ryanair plans to cut flights to several countries including Morocco.
While it predicted a profit rebound in 2021, just a few weeks ago, the company must finally be disillusioned.
In a statement to investors, Michael O’Leary, general manager of the company, announced his intention to postpone from June to July, the restart of its activities, maintaining that it planned to operate at 50% of its capacity over the three months, from July to September, its most active period in normal times. The other decision the company is considering is to revise its growth forecast and aircraft orders. Ryanair also wants to negotiate with Boeing to reduce the number of deliveries over the next 24 months.
The airline director said Ryanair plans to resume passenger demand and return to pricing policy (at 2019 levels) in at least two years, until summer 2022 at the earliest. With this in mind, some of its bases, including those opened in Morocco, will have to close with the loss of nearly 3,000 jobs, mainly concerning its pilots and flight personnel.
Stuck in this crisis, the company expects a loss of 100 million euros in the three months from June. According to the first official, it will be the first loss suffered by the company during this period.
In addition, Ryanair’s chief executive wants to challenge before European courts the granting of billions of euros in state aid to competing airlines. At this rate, Ryanair will have to compete with national airlines that have received 30 billion euros in public aid in the months following this covid-19 crisis.