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Friday, March 29, 2024

Not so bullish: Ryanair changes tune on virus crisis

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Not so bullish: Ryanair changes tune on virus crisis
Not so bullish: Ryanair changes tune on virus crisis

Ryanair says it will cut 3,000 jobs, having concluded that demand won't bounce back as fast as it once thought.

Julian Satterthwaite reports.

Ryanair has changed its tune.

Europe’s biggest budget airline had sounded bullish about a quick recovery.

Now, not so much.

On Friday (May 1) the carrier said it would cut 3,000 jobs.

It will also talk to Boeing about delaying plane deliveries.

That’s after it concluded travel demand won’t recover until 2022.

It expects a loss of about 110 million dollars in the April to June period.

That would be its first-ever loss in that quarter.

Just two weeks ago it all sounded very different.

Back then boss Michael O’Leary predicted a strong rebound, and bumper profits next year.

He even talked about ordering more jets.

On Friday he was angry about the aid going to other airlines: (SOUNDBITE) (English) RYANAIR CEO, MICHAEL O'LEARY, SAYING:"But if you look at the French what they've done in the last two weeks is that they've come up with a scheme that refunds airport taxes, French airport taxes, but only to French airlines.

So Air France gets the tax back, but the French government expects Ryanair, Easyjet and BA, all of whom fly to France, to keep paying these airport taxes.

I mean, just nakedly illegal." The glummer outlook comes as one rival battles for survival.

Norwegian Airlines hopes to seal a rescue deal at an extraordinary shareholders’ meeting on Monday (May 4).

Without an agreement it may run out of cash by mid-May.

But some airlines have found a new way to cling on.

They’re stripping out seats to make space for cargo.

Lufthansa is among those starting to convert planes.

Airbus says around 20 carriers are looking into doing the same.

Right now, flying stuff is a whole lot more profitable than flying people.

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