Ryanair, Europe’s Biggest Budget Airline, Is Cutting 3,000 Jobs To Survive The Coronavirus Crisis

TOPLINE

Ryanair has warned it could cut up to 3,000 jobs, mostly pilots and cabin crew, while remaining staff will face a 20% pay cut as the budget airline reorganises to cope with the crippling effects of coronavirus lockdowns and travel restrictions.

KEY FACTS

Big number

Ryanair expects to report a net loss of 100 million euros ($110 million) in the first quarter, and further losses in the second quarter as fleet groundings continue into the peak summer season.

The airline is working to manage the 4 billion euros ($4 billion) in cash reserves it had, going into the coronavirus crisis.

What to watch for

Details of job cuts and where they will fall will be released on July 1.

Crucial comment

Chief executive Michael O’Leary told the BBC: “We’ve been grounded  for three months and carried less than 150,000 people over those three months when we expected to carry 40 million.

“The challenge for us is while we believe we’ll be back flying in July, most of the summer season has gone.”

Key background

O’Leary has been at odds with the EU’s commissioner for competition, Margrethe Vestager, over state aid rules. The Ryanair boss has argued that aid should match an airline’s share of a market. 

In the latest sign that coronavirus has battered the airline industry, Britain’s Heathrow airport, which is Europe’s busiest, said they expect passenger numbers to have dropped by around 97% in April, and that numbers are likely to be down until air travel is deemed safe once more. The cost of grounded fleets and lower passenger numbers is high: the International Air travel Association has warned that global airlines stand to lose $314 billion in passenger revenues this year, down 55%.

Further reading

How Airlines Are Dealing With The Coronavirus Outbreak (Forbes)

RYANAIR HOLDINGS PLC – COVID-19 MARKET UPDATE (Ryanair)

Airlines In EU Face $76B Losses From Coronavirus, Says IATA. The U.K. And Spain Hardest Hit (Forbes)

How Coronavirus Will Change Air Travel (Forbes)

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