Irish low-cost carrier, Ryanair, has reportedly stated that it is expecting an annual loss forecast of more than double its previous estimation, as it also foresees a one-third cut in its January air traffic amidst imposed travel restrictions; to curb the spread of the recently discovered Omicron variant.
Ryanair, known as Europe’s largest airline, according to passenger numbers, has reported an expected net loss between €250 million ($283 million) and €450 million ($510 million), in the year ending March. The previous forecast had put the amount between €100 million ($113 million) to €200 million ($226 million).
The airline has also cut its passenger forecast range for this month from 10 million-11 million to between 9 and 9.5 million.
Ryanair has put the blame on French and German authorities for imposing a ban on arrivals from the UK, as well as the suspension of flights to and from the EU and Morocco.
The airline has also estimated a cut in its passenger forecast for January to 6 million-7 million, which was previously forecasted to be 10 million.
Ryanair has announced that it will wait for the availability of more scientific information regarding the Omicron variant, such as its impact on hospitalization as well as on the people of EU along with any travel restrictions till next month, before making any revisions to its schedules for February and March.
Only last month, Ryanair had announced its first quarterly profit recorded since the pandemic had begun.
It is now expected that the airline will be flying less than its previously estimated forecast of 100 million passengers as the fiscal year comes to an end in March.
In a statement, the carrier has claimed that these figures hugely rely on the flow of Covid-related news, whether positive or negative. It has, however, promised to provide an update once the financial results of its third-quarter are released on 31st January.
Source credit: https://www.theguardian.com/business/2021/dec/22/ryanair-more-than-doubles-annual-loss-forecast-over-omicron-coronavirus
Pranali Mehta
A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writRead more...