* Loss likely close to 1 billion euros
* But sharp recovery seen in late 2021
* Traffic 70-90% of normal levels next winter
(Adds CEO quote; analyst)
By Conor Humphries
DUBLIN, Feb 1 (Reuters) - Ryanair expects to lose
close to 1 billion euros ($1.2 billion) in its current financial
year, by far its worst ever performance, but Europe's largest
low-cost carrier on Monday said it remains cash rich and expects
a "reasonable summer".
The Irish airline forecast a loss of between 850 and 950
million euros in its current financial year, which ends on March
31, around 5 times larger than its previous record annual loss
posted in 2009.
"COVID-19 continues to wreak havoc across the industry,"
Chief Executive Michael O'Leary said in a statement. "FY21 will
continue to be the most challenging year in Ryanair's 35 year
history."
But he said he expected the recovery to accelerate between
July and September, the second quarter of the airline's
financial year, before returning to 70% and 90% of normal levels
between October and March.
"We are hopeful that moving into peak summer, we're going to
see the lockdowns relaxing ... and there is huge pent-up demand
out there. I think it could be a reasonable summer," Chief
Financial Officer Neil Sorahan said.
In the winter, "we hope to be getting back to some kind of
normality," he added.
COVID-19 restrictions slashed Ryanair passenger numbers by
78% in the last three months of the year, the third quarter of
its financial calendar, pushing it to a quarterly loss of 306
million euros ($371.06 million). That compares with a loss of
300 million euro forecast in a company poll of analysts.
Ryanair's 82% fall in revenue in the quarter compared with
falls of 88% at rival easyJet and 77% at Wizz,
which both reported results last week.
Ryanair is widely seen as one of the best-placed airlines in
the world to weather the COVID-19 crisis due to its large cash
balance and lack of long-haul and business-class.
It said it had cash on hand of 3.5 billion euros at the end
of December, compared with 4.5 billion at the end of September.
"The ‘in-line’ Q3’21 and the strong cash balance sheet of
the company may be enough today to buoy investor sentiments
after the volatility of last week," Citi analyst Mark Manduca
said in a note.
The airline reaffirmed its forecast it would fly between 26
million and 30 million passengers in the year to end-March
compared with 149 million in its previous financial year. But it
warned there was "more risk towards the lower end of the range."
Ryanair in December ordered an additional 75 Boeing
737 MAX jets in what was the largest order since the plane was
grounded in early 2019 following two fatal crashes.
The jet was cleared in January to resume flying in the European
Union.
Ryanair said it expects to have taken delivery of at least
24 of the 210 it has on order in time for its peak summer
season, down from an earlier forecast of up to 30, which it said
was due to the timing of its approval.
Ryanair shares closed on Friday at 14.3 euros, down 15% from
its pre-COVID peak of 16.9 euros on Jan. 10 last year.
($1 = 0.8247 euros)
(Reporting by Conor Humphries; Editing by Jacqueline Wong and
Louise Heavens)
easyJet (EZJ)
