UPDATE 3-Ryanair boss looks beyond summer loss to post-pandemic growth

* H1 loss 197 mln euros; H2 loss to be bigger

* 2021 capacity could be half 2019 levels

* Shares up 5% on cash reserves, optimism

* Talks with Boeing continue on new order
(Updates with shares up 5%; comments from CEO)

By Conor Humphries

DUBLIN, Nov 2 (Reuters) - Ryanair recorded its first
loss for the key summer period in 30 years as a result of the
coronavirus crisis, which threatens to cut passenger numbers to
half pre-pandemic levels next year.

But a stronger than expected balance sheet bolstered
investor sentiment on Monday as Ryanair Chief Executive Michael
O'Leary said there had never been a more exciting opportunity
for growth than that likely to emerge out of the pandemic.

Shares in the Irish airline, Europe's largest low-cost
carrier, were up 6% at 1055 GMT, while easyJet and
British Airways owner International Airlines Group were
flat after a new lockdown was announced in England.

Ryanair posted a 197 million euros ($230 million) loss in
the six months to the end of September after COVID-19
restrictions cut traffic by 80% and O'Leary said a deeper loss
was likely in the second half.

That was down from a profit of 1.15 billion euros in the
first half last year and represented Ryanair's first loss in its
key summer quarter since 1990.

It was, however, less than the 244 million euro loss
forecast in a company poll of analysts, while cash balances
increased to 4.5 billion euros from 3.9 billion euros in the
previous quarter. O'Leary said he did not anticipate the airline
would have to raise more funds.

"Ryanair has delivered everything investors might have
wanted ... in what remains unprecedented negative trading
conditions," Goodbody Analyst Mark Simpson said in a note.

SHORT-TERM CUTS

Plans to fly 40% of last year's traffic levels in the winter
might be pared back further, O'Leary said.

But Ryanair is likely to outperform broader European
traffic, which he said could fall as low as 25% of last year's
levels, and plans to fly 50% to 80% of its pre-pandemic capacity
next summer, depending on how the crisis develops, he said.

O'Leary forecast Ryanair would emerge from the COVID-19
crisis with a "meaningfully" lower staff, plane and airport
costs and was in talks with Boeing for extra aircraft to
take advantage of opportunities created by struggling rivals.

"There has never been a more exciting ... opportunity for
growth, certainly in the European airline industry," he told a
conference call with investors.

"It's going to rebound very strongly with huge ... pent-up
demand and Ryanair will, in my view, be by far the best
position."

O'Leary said Ryanair had yet to finalise terms with Boeing
on compensation for the 18-month delay of deliveries of the
grounded 737 MAX jet, with the first 30 of 135 jets on order due
to arrive by next summer.

But he said he was in talks about additional jets to take
advantage of growth opportunities - most likely the 197-seat MAX
200 due to production delays in the 230-seat MAX 10.

Chief Financial Officer Neil Sorahan told Reuters that
Ryanair was also talking with Airbus about a possible
order but said talks with Boeing for more MAX jets were "more
advanced".
($1 = 0.8597 euros)
(Reporting by Conor Humphries; Editing by Christopher Cushing,
Sherry Jacob-Phillips and Alexander Smith)