LONDON —
Ryanair slashed losses in the final quarter
of 2021 but the emergence of the Omicron variant cut into the normally busy
winter holiday travel season, the no-frills airline said Monday.
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Chief executive Michael O'Leary said the reporting period
started well, with strong bookings as there was "less confusion"
about the
British government's "absurd 'traffic light system'" to
rank COVID risks from countries.
Britain is a key market for the airline based in neighboring
Ireland and which flies throughout
Europe.
Bookings continued to improve in November but "the
sudden emergence of the Omicron variant" and "the media hysteria it
generated" forced European governments to reimpose travel restrictions
towards the end of the quarter, O'Leary said.
The measures in the run-up to Christmas "significantly
weakened peak"
Christmas and New Year bookings and fares, he said.
Net losses stood at 96 million euros in the company's third
quarter, a third of the figure for the same period in 2020.
'Expect further COVID disruptions'
Ryanair said its full-year traffic forecast was unchanged at
"just under 100 million passengers".
Its net loss guidance stayed at between 250 million and 450
million euros.
"This outturn is hugely sensitive to any further
positive or negative COVID news flow and so we would caution all shareholders
to expect further COVID disruptions," O'Leary warned.
The UK government in December reimposed stricter travel
rules — including mandatory pre-arrival tests and self-isolation until
travelers had tested negative — after a surge in cases due to Omicron.
However, the travel measures are being eased, as Prime
Minister
Boris Johnson argued they were having a "limited impact"
while imposing "significant costs" on the industry.
The government will scrap compulsory COVID tests from
February 11 for fully jabbed arrivals and quarantine for unvaccinated
travelers.
Currently, fully vaccinated arrivals are required to take a
lateral flow test within two days, while those not jabbed must self-isolate for
10 days and take several tests before and after travel.
"In the short term, Ryanair is making no secret of the
risk of further COVID disruption to come, with investors at least able to have
some confidence it can steer a flight path through any turbulence," AJ
Bell investment director Russ Mould said following the earnings update.
With "one of the strongest balance sheets in the
industry, ... it is very well placed for a full recovery in the aviation
sector, with the means to invest in new routes and potentially even to swoop on
ailing rivals".
One rival appearing to do well is British carrier
EasyJet,
which last week said it had slashed losses by half in the final three months of
2021.
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