Earlier today, at the beginning of Labor Day, Irish low-cost airline Ryanair announced that it plans to cut 3,000 jobs due to the crisis in the industry caused by the coronavirus pandemic. The redundancies will mainly affect pilots and flight attendants.
The company plans to cut salaries by up to 20% and close several bases in Europe. For his part, Ryanair CEO, Michael O'Leary, has reduced his salary by 50% for April and May, now deciding to extend that reduction until March 2021.
A Ryanair Boeing 737-800 landing at London Gatwick airport. Photo by Karam Sodhi | AeroNewsX
Doubts on the future at Ryanair
After the extension of the suspension of 99% of flights until July 2020, the airline also announced in a statement that it did not expect demand in the sector to resume until the summer of 2022.
Last week, O'Leary, interviewed by the Financial Times, had rejected the idea of flying at a reduced rate in terms of capacity to maintain social distancing measures on board, as "it is not possible to have a profit with a 66% fill rate".
The company has also started negotiations with Boeing to reduce the number of aircraft deliveries for the next 24 months due to the reduction in passenger traffic.
During the first quarter, the number of passengers fell by 99.5%, and until March 2021 Ryanair does not expect to carry more than 100 million passengers - 54 million less than the original target.
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