Passenger planes operated by Ryanair Holdings will stand on the tarmac at London's Stansted Airport in Stansted, UK on May 1, 2020.
Chris Ratcliffe | Bloomberg | Getty Images
Ryanair recorded a net loss of € 185 million ($ 216.4 million) in the first quarter of its 2021 financial year, slightly above market expectations.
Analysts interviewed by Refinitiv expected a net loss of 205 million euros for the quarter ended June 30.
The low-cost airline said on Monday that the next 12 months of business "will be a very challenging year".
"It is impossible to predict how long the Covid-19 pandemic will last, and a second wave of Covid-19 cases across Europe in late autumn (when the annual flu season starts) is currently our greatest fear," said Ryanair in one Statement.
The sector was hit hard by the pandemic, in which Ryanair's entire fleet came to a standstill for about four months when countries introduced stringent blocking measures to curb the spread of the virus. Since then, the economies in Europe have reopened and the airlines have returned to heaven. However, socially distancing measures and quarantine policies have restricted some operations.
The Irish company expects traffic to decrease by 60% in 2020/2021, but the uncertainty surrounding the pandemic will not allow it to make further forecasts for the year. Nevertheless, Ryanair believes that the economic crisis will prevail against competitors due to a "much lower cost base".
The airline also announced that it cut costs by 85% in the first quarter, including negotiating wage cuts with employees. Ryanair is also concerned that negotiators in the EU and the UK will not reach a Brexit trade deal by the end of the year.
"The challenge of Brexit, and in particular a no-deal Brexit, remains high. We hope that the UK and Europe will agree a trade deal for air travel before the end of the transition period in December that will allow free movement of people and the deregulated airline market between the UK and Ireland continues, "said Ryanair.