Airline warns its annual deficit could reach £170 million but boss Michael O’Leary voices optimism about the future Ryanair has announced it intends to cut fares this winter in a bid to fill more spaces on its planes and reduce its deficit.
The low-cost airline reported after-tax losses of €48 million (£40.6 million) from March to the end of September and warned its annual deficit could hit €200m (£170m). With air travel opening up and reported losses narrowing, the long-term impacts of Covid-19 are still weighing down on the company.
Ryanair boss Michael O’Leary made a comment to reputed media stations that the airline industry was seeing a “very strong recovery” across Europe – but he predicted the winter period would be “tough” for the industry as rising Covid-19 infections create another drag on travel.
He added that reducing the cost of tickets would “set us up strongly for a very strong recovery”.
Mr O’Leary predicted that the number of airline seats left unfilled on Ryanair planes would reduce from 20 per cent to 10 per cent over the next year. He also anticipated that the airline would return to profitability by March 2023.
He added: “We’re seeing a very strong recovery in short-haul travel across Europe and it is being led by Ryanair.”
Mr O’Leary said consumer demand for flights has risen, with passenger numbers up from eight million from March to June, to 31 million in the three months that followed – and the recent school holidays meant aeroplanes were “full to the gills as people got a last bit of sun”.
However, he warned that although Ryanair’s deficit narrowing, the long-term impacts of…
