Recent months have been unprecedented in the tourism sector. Travel restrictions, flight suspensions, falling consumer confidence and a slew of negative press are just some of the issues airlines are having to contend with. As one of the airline industry’s leading players, Ryanair has been severely impacted.
- European travel restrictions caused Ryanair to lower its schedule to only 1% of normal level flights, causing major cash burn and financial loss. Load factor has decreased as Ryanair welcomed 0.04 million passengers in April alone, compared to 13.5 million in April 2019. The announcement of positive FY20 results provided positive messages for stakeholders.
- Ryanair has had to issue refunds to passengers with cancelled flights, however a survey conducted by Which? showed that 8 in 10 travelers are still expecting a refund. This has caused a bad employee and customer image for Ryanair, which is damaging to future prospects.
- Fuel hedging mechanisms have cost Ryanair 300 million Euros as the price of oil went into the negative for the first time in history, adding to multiple outstanding financial losses.
- This case study looks at how the COVID-19 pandemic is impacting Ryanair and assesses the company’s response.
Reasons To Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the airline industry
- Assess the impact on Ryanair
- Understand what the future may hold for the company