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Ryanair Issues Outlook; To Begin Consultations With Trade Unions On Job Cuts

Ryanair Holdings plc (RYA.L,RYAAY) said the Group expects to report a net loss of over 100 million euros in first quarter, with further losses in second quarter due to the substantial decline in traffic arising from Covid-19 fleet groundings. Ryanair expects to operate less than 1% of its scheduled flying program in Apr, May & June. First quarter traffic of less than 150,000 passengers will be 99.5% behind the budget. Ryanair expects to carry no more than 50% of its original traffic target of 44.6 million in second quarter. For the full year ending March 2021, Ryanair now expects to carry less than 100 million passengers, more than 35% below its original target.

The company now expects the recovery of passenger demand and pricing will take at least 2 years. The Ryanair Airlines plans a restructuring and job loss program to commence from July 2020, which may result in the loss of up to 3,000 mainly pilot and cabin crew jobs, unpaid leave, and pay cuts of up to 20%, and the closure of a number of aircraft bases across Europe until traffic recovers. The company is in active negotiations with both Boeing, and Laudamotion's A320 lessors to cut the number of planned aircraft deliveries over the next 24 months.

Group CEO Michael O'Leary, whose pay was reduced by 50% for April and May, has now agreed to extend his pay cut for the remainder of the fiscal year.

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