Ryanair CEO expects 10% coronavirus hit to bookings, Q1 earnings impact

Ryanair expects April and May bookings to fall 10% due to the coronavirus outbreak, dealing a “meaningful impact” to quarterly earnings, but its CE Michael O’Leary said Tuesday the situation will stabilise by early summer. The airline said Monday it would cut 25% of its Italian capacity for three weeks but it was far too early to speculate about earnings from the next financial year, which begins April 1. Asked about the prospects for earnings in the three months to June 30, Q1 of Ryanair’s financial year, O’Leary on Tuesday said “there will be a meaningful impact.” “At the moment we’re expecting a 10% decline in bookings through the months of April and maybe May. We could be down about 2m passengers over that period,” O’Leary said. “But that I think would be about the extent of it,” he added, saying that once temperatures begin to rise in Europe in May and June “the hysteria about the spread of the COVID virus will have calmed down again.” O’Leary said his airline has not yet responded with cheaper pricing but it would stimulate the market if necessary closer to the summer. He hinted that the crisis would have some upsides for Ryanair, reducing pressure from the delayed delivery of Boeing 737 MAX jets, grounded due to two fatal crashes, and possibly putting weaker rivals out of business.<br/>