Ryanair shares slump after plans to cut 3,000 jobs amid Covid-19 crisis
The low-cost airline carrier saw its shares take a tumble after announcing plans to cut 3000 jobs due to the economic fallout from the Covid-19 crisis.
Ryanair saw its shares fall 4% on Friday, after announcing plans to cut 3000 jobs due to the economic impact of the Covid-19 crisis.
The low-cost airline carrier also warned investors that it could take up to two years for the company to fully recover from the impact of the outbreak and see its performance return to pre-crisis levels.
‘Ryanair now expects the recovery of passenger demand and pricing (to 2019 levels) will take at least two years, until summer 2022 at the earliest,’ the company said.
‘Ryanair airlines will shortly notify their trade unions about its restructuring and job loss programme, which will commence from July 2020.’
Ryanair is trading at €9.82 per share as of 14:15 (GMT) on Friday.
Ryanair dramatically reduces flights in Q2
The low-cost airline told investors in its Covid-19 market update that it will operate less than 1% of its scheduled flights in April, May and June.
Ryanair also said that it expects to carry no more than half of its traffic target of 44.6 million passengers over the second quarter (Q2) 2020.
‘Ryanair is now reviewing its growth plans, and aircraft orders,’ the company said. ‘We are in active negotiations with both Boeing, and Laudamotion’s A320 lessors to cut the number of planned aircraft deliveries over the next 24 months, which could reduce our capex commitments, to more accurately reflect a slower and more distorted EU air travel market in a post Covid-19 world.’
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