Ryanair profit downChristian Fernsby ▼ | May 18, 2020
Ryanair Holdings reported Monday that its fiscal 2020 profit before tax on IFRS basis declined to 670.3 million euros from last year's 948.1 million euros.
Ryanair Attributable profit was 648.7 million euros
Adjusted profit before tax was 1.08 billion euros and adjusted attributable profit was 1 billion euros for the latest year.
Total operating revenues increased 10 percent to 8.49 billion euros from 7.69 billion euros a year ago.
Traffic grew 4 percent to 148.6 million guests. Revenue per guest rose 6 percent to 57 euros with 2 percent higher fares. Load Factor, meanwhile, dropped 1 percentage points to 95 percent.
The company noted that most of its fleet was grounded from mid-March by EU Government flight bans and restrictions. These groundings reduced March and full year traffic by over 5 million guests and cut FY20 profits by over 40 million euros.
Looking ahead for the first quarter, the company expects to record a loss of over 200 million euros, with a smaller loss expected in Q2 in the peak summer due to a substantial decline in traffic and pricing from Covid-19 groundings.
For fiscal 2021, the company currently expects to carry less than 80 million passengers, almost 50 percent below its original 154 million target.
The company noted that fiscal 2021 will be difficult as its airlines work hard to return to scheduled flying following the Covid-19 crisis. Unlike many flag carrier competitors, Ryanair will not request or receive State Aid.
Ryanair cannot provide FY21 profit after tax guidance at this time due to the uncertainty over the impact and duration of the coronavirus pandemic, coupled with no visibility on what customer behaviour and demand will be following a return to service.
Further, Ryanair said its return to scheduled flying will be rendered significantly more difficult by competing with flag carrier airlines who will be financing below cost selling with the benefit of over 30 billion euros in unlawful State Aid, in breach of both EU State Aid and competition rules. ■