(Alliance News) - Ryanair Holdings PLC on Monday reported a loss in its most recently ended financial year but it expects an improvement as coronavirus restrictions ease.
The Irish budget airline said it swung to a loss for the year to the end of March of EUR1.11 billion from EUR648.7 million profit recorded the year before.
Annual revenue fell 81% year-on-year to EUR1.64 billion from EUR8.49 billion, in line with the fall in traffic to just 27.5 million from 148.6 million the year prior. Load factor declined to 71% from 95% year-on-year.
Ancillary revenue delivered a solid performance as more guests chose priority boarding and reserved seating, resulting in an 11% increase in per passenger spend to almost EUR22. Ancillary revenue is generated from non-ticket sources, such as baggage fees and on-board food and services.
Due to an 81% reduction in traffic and aircraft delivery delays, the company said it recorded a EUR200 million ineffectiveness charge on fuel and currency hedges in its most recently ended financial year.
Going forward, Ryanair said its current financial year continues to be challenging, with uncertainty around when and where Covid lockdowns and travel restrictions will be eased.
Looking ahead, the company said it expects first-quarter traffic to be between 5 million and 6 million guests. It also believes that annual traffic is likely to be towards the lower end of its previously guided range of 80 million to 120 million passengers, which would represent a jump of up to four times year-on-year.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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