Ryanair has cancelled 80% of its flights until May and said it had not ruled out a “full grounding of the fleet” in the wake of the coronavirus crisis.
Europe’s largest short-haul airline is the latest in a growing list of global carriers to have cut flights and grounded planes as governments close the skies in an attempt to slow the spread of Covid-19.
“For April and May, Ryanair now expects to reduce its seat capacity by up to 80%, and a full grounding of the fleet cannot be ruled out,” Ryanair said in a statement on Monday. “[The airline is taking] immediate action to reduce operating expenses, and improve cash flows.”
Ryanair said that over the past seven days, Italy, Malta, Hungary, the Czech Republic, Slovakia, Austria, Greece, Morocco, Spain, Portugal, Denmark, Poland, Norway and Cyprus had all imposed flight bans. The restrictions are expected to lead to the grounding of the majority of its aircraft fleet across Europe over the next seven to 10 days.
Michael O’Leary, Ryanair’s chief executive, said: “Ryanair is a resilient airline group, with a very strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced or even zero flight schedules, so that we are adequately prepared for the return to normality, which will come about sooner rather than later as EU governments take unprecedented action to restrict the spread of Covid-19.”
The airline industry has warned that without immediate multibillion dollar bailouts most airline companies will go bust with months.
British Airways’ parent company, IAG, said it plans to cut capacity in April and May by at least 75% and American Airlines is also cutting international routes by 75%.
Share prices in virtually all airlines have collapsed by more than 50% since the coronavirus crisis struck Europe.
