Ryanair has reported a first-half 2020 loss of €197 million, compared to a profit of €1.15 billion in the first half of 2019. Revenue in the first half of 2020 fell by 78% to €1.18 billion as traffic fell 80% to 17.1 million. With almost zero first quarter traffic, the vast majority of first-half revenue was earned in the second quarter. Ancillary revenue performed strongly as more guests chose priority boarding and reserved seating.
During the first half-year substantial work has been undertaken to successfully improve Ryanair’s long term cost leadership. The goup has agreed modest pay cuts with its people and their unions which helped minimize job losses. Lauda has been completely restructured, better terms were agreed with maintenance providers, lessors, other suppliers and many airport deals were renegotiated. Due to significantly reduced world traffic forecasts and ongoing aircraft delivery delays, the group recorded a €214 million ineffectiveness charge on fuel and currency hedges in the first half of 2020.
Boeing expects a return to service for the 737 MAX-8 in the fourth quarter, allowing Ryanair to, hopefully, accept delivery of its first 737 MAX-200 in early 2021. The group expects to take delivery of approx. 30 737 MAXs before peak season of 2021. While the group received supplier reimbursements in the second quarter, compensation discussions will not be finalized or concluded with Boeing until the 737 MAX returns to service and revised delivery schedules can be finalized and agreed.