Ryanair Holdings PLC RYANAIR FY20 PROFITS REMAIN WITHIN GUIDANCE RANGE (6562I)
April 03 2020 - 2:00AM
UK Regulatory
TIDMRYA
RNS Number : 6562I
Ryanair Holdings PLC
03 April 2020
RYANAIR FY20 PROFITS REMAIN WITHIN LOWER END OF GUIDANCE
RANGE
STRONG BALANCE SHEET AND LIQUIDITY CONTINUES
Ryanair Holdings plc today (3 April) advised shareholders that
it expects to report pre-exceptional FY20 (yr. end 31 March 2020)
Profit After Tax of between EUR950m and EUR1,000m, which is at the
lower end of its previously announced guidance range. This is due
to the response of EU Governments to the spread of the Covid-19
virus, which have since mid-March included widespread flight bans
and travel restrictions which have closed Europe's skies to all but
a tiny number of rescue and medical flights. The Ryanair Group saw
traffic in March fall by 48% from 10.9m guests in 2019 to 5.7m
guests in 2020. This caused full-year traffic to rise just 4% to
149m, compared to the 154m figure that Ryanair was on track to
achieve, even as late as early March.
Ryanair is currently operating less than 20 daily flights, which
is 99% less than its pre-Covid 19 daily schedule of over 2,500
flights. The airline expects its fleet to remain largely grounded
for at least April and May. We therefore expect to record
ineffectiveness on our FY21 fuel hedges as an exceptional item in
our FY20 results. We currently estimate that this will amount to an
exceptional charge of approximately EUR300m. Ryanair Group Airlines
continue to work with EU Governments to maintain minimum flight
links for emergency reasons, and to operate rescue and medical
flights when requested to do so. Ryanair continues to operate
occasional currency flights to ensure that its pilots and aircraft
are ready for a return to service when this Covid-19 crisis passes,
as it inevitably will.
Ryanair has one of the strongest balance sheets in the industry,
with year-end cash equivalents of EUR3.8bn and 327 (77%) of the
Group's owned fleet unencumbered and debt free. The Ryanair Group
has already implemented a series of measures to cut operating
costs, improve liquidity and cash flows. These include aircraft
groundings, deferring capex, suspending share buybacks, freezing
recruitment and discretionary spending, cutting all pay (including
senior management) by 50% with immediate effect for April and May,
and we are engaging with our people and our unions across all EU
countries to agree payroll support mechanisms as they are put in
place by EU Governments.
We are grateful to many EU Governments for their foresight and
speed of response in recognising that the EU airlines are one of
the most exposed industries to the Covid-19 pandemic and that our
flights have been grounded by necessary Government restrictions to
combat the spread of Covid-19. However, we equally support the EU
Commission's position that any such Government supports must comply
with all EU State Aid and Competition rules.
Given the continued uncertainty on the impact and duration of
the Covid-19 pandemic, it is not possible to give FY21 guidance at
this time. The Ryanair Group of Airlines will continue to focus on
delivering cost savings, protecting jobs, working with EU
Governments to support rescue and medical flights, and preparing
for the return to normal service when the Covid-19 crisis has
passed, which we hope will be sooner rather than later.
As this is a closed period, the Group's next market update will
be on 18(th) May when we release our FY20 results.
ENDS
This announcement contains inside information
For further information
please contact: Shane O'Toole Piaras Kelly
Ryanair Edelman Ireland
Tel: +353-1-9451212 Tel: +353-1-6789333
RyanairIR@ryanair.com ryanair@edelman.com
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END
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