Record loss for budget airline Ryanair – NRC

Ryanair, Europe’s largest low-cost airline, suffered a record loss last year. In the broken financial year, to March 2021, the Irish company incurred a loss of € 815 million. In addition, Ryanair has written off another 200 million euros, most of it on fuel contracts.

“2021 has been the most challenging year in Ryanair’s 35-year history,” the company said at The New York Times. Annual figures display on Monday morning. Like many other airlines, Ryanair has been hit hard by the consequences of the Covid-19 crisis. The company carried 27.5 million passengers, down 81 percent from the previous year. Turnover decreased by 81 percent to 1.64 billion euros. Ryanair cut about a thousand jobs last year and now has about 16,000 employees.

Michael O’Leary, Ryanair Group chairman, said on Monday that the company would suffer a slight loss next year, or it might just tie. The past few weeks have already shown an increase in bookings, as travel restrictions in the UK, among other countries, have been eased. Several airlines fly extra to Portugal, which is one of the few safe “yellow” holiday destinations in Europe. However, O’Leary said that predicting the 2022 fiscal year remains impossible.

Game changer

Ryanair’s CEO reported Monday that the airline will take delivery of its first Boeing 737 MAX 8200 at the end of May. This is two years later than planned. Ryanair ordered 210 aircraft of this type; Initially there were 135 aircraft. It will likely follow other aircraft after the summer season.

O’Leary said the Irish company had negotiated a “modest” discount from Boeing for the late delivery. The Boeing 737 MAX was grounded for two years after two accidents within six months (in October 2018 and March 2019), which resulted in a total of 346 casualties and much uncertainty about the aircraft’s design and potential flaws.

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O’Leary calls the Boeing 737 8200 a “game-changer” – a device that will alter the flight path. The aircraft can handle 4 percent (197) passengers more than the original 737 MAX. It uses 16 percent less fuel and is 40 percent quieter than an old Boeing 737 Max. O’Leary confirmed that Ryanair is taking an important step towards a more sustainable flight with this. The Irish airline wants to operate 12.5 percent of its flights with sustainable kerosene by 2030 (Sustainable aviation fuel Or SAF). KLM must mix 14 percent of the SAF in 2030; This is one of the conditions associated with financial support for the Dutch government.

Read also: Ryanair is once again vocal about state aid in the European Union court

Ryanair has been campaigning against the government aid for months. O’Leary thinks competition is unfair; According to him, support from governments should not only go to the so-called Flag carriersAnd national airlines such as Air France / KLM, Lufthansa and SAS. Ryanair received employee support from the government last year. O’Leary files 16 lawsuits in the European Court against what he sees as illegal aid to the state, but he has lost the cases that have been judged so far.

Megan Vasquez

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