Ryanair has told its staff it has 500 more pilots and 400 more cabin crew than required and job losses will be announced in the coming weeks.
Chief Executive Michael O’Leary made the comments in an internal video to staff following the release on Monday of financial results for the three months to June 30.
It is believed details of redundancies will be given by the end of August, and then job cuts would take place at around the end of September and again after
‘We hope to preserve as many jobs as we can, but we have to respond now and we have to respond quickly to the MAX aircraft delivery delays and to the threat of a no-deal Brexit at the end of October,’ O’Leary said.
It comes as shares of Europe’s largest low-cost carrier have almost halved in value in two years.
The company has grappled with overcapacity in Europe, Britain’s plans to leave the European Union and, most recently, delays in delivery of the Boeing 737 MAX.
Ryanair has tolds its staff is has 500 more pilots and 400 more cabin crew than required and job losses will be announced in the coming weeks
Chief Executive Michael O’Leary (pictured) made the comments in an internal video to staff following the release on Monday of financial results for the three months to June 30
Ryanair pilots in Britain and Ireland are holding a ballot over potential industrial action in a row over pay and conditions.
The ballot will open on July 24 and close on August 7 when the results will be announced, potentially causing chaos for summer holidaymakers.
On Monday, Ryanair reported a 21 per cent fall in profits to 243 million euros (£219 million) in the first quarter of this financial year.
The low-cost airline cited lower fares and higher costs for fuel and staff as reasons for the decline during the three months to the end of June.
Chief executive Michael O’Leary said: ‘The two weakest markets were Germany, where Lufthansa was allowed to buy Air Berlin and is selling this excess capacity at below cost prices, and the UK, where Brexit concerns weigh negatively on consumer confidence and spending.’
The airline said its average fares fell 6 per cent year on year during the quarter, but this was partially offset by 14 per cent higher ancillary revenue, such as baggage, food and other extras.
The drop in fares is expected to continue during the summer season, and across the whole financial year will be ‘towards the lower end’ of minus 2 per cent to plus 1 per cent, it added.
Earlier this month, the firm slashed its expected growth rate for summer 2020 from 7 per cent to 3 per cent amid a delay in deliveries of the Boeing 737 Max aircraft.
It was due to have 58 of the planes for that season, but now expects to receive just 30.
The airline believes deliveries will begin in ‘January at the earliest’, Ryanair said on Monday.
Mr O’Leary added that the airline will ‘continue to negotiate attractive growth deals as airports compete to attract Ryanair’s reliable traffic growth’.
Passenger numbers are expected to grow by 7 per cent to more than 152 million for the year to March 31 2020, which is slightly less than the 153 million previously forecast due to the Max delays.
The forecast for profits after tax for the year remains unchanged at between 750 and 950 million euros (£675 million-£850 million).
More to follow…