FX.co ★ Ryanair expects annual profit plunge due to coronavirus

Ryanair, the Irish airline, has recently warned its shareholders that it may incur hefty losses in the near future. According to preliminary estimates, in 2021, they will amount to about €1 billion ($1.21 billion). Analysts believe that this is the worst result in the entire history of the company.

The airline managers have calculated that in the current financial year, which ends on March 31, the revenue may nosedive from €850 million to €950 million. This is almost five times more than the previous biggest drop logged in 2009. The reason for such a severe downturn is the same - the COVID-19 pandemic. The virus delivered a harsh blow to the whole industry.

Analysts say that the year 2021 will be one of the most taxing in the 35-year history of Ryanair amid ever-changing travel restrictions, European lockdowns, and the slower vaccine rollout. The carrier said that traffic fell by 78% in the final three months of 2020 compared to a year earlier, pushing the company to a €306 million third-quarter loss.

In the last three months of 2020, Ryanair's revenue declined by 82%. At the same time, the airline's competitors also incurred losses due to the pandemic: EasyJet's profit crashed by a whopping 88%, while Wizz's revenue collapsed by 77%.