Shares of Ryanair Holdings PLC (LON: RYA) have tumbled 9% today to travel below 10p for the first time in two months.
The low-cost carrier posted a loss of €185 million for the first quarter of the year. Revenue collapsed big time – from €2.3 billion to €125 million.
“The past quarter was the most challenging in Ryanair’s 35-year history. Covid-19 grounded the group’s fleet for almost four months (from mid-March to end June) as EU governments imposed flight or travel bans and widespread population lockdowns,” the company said in a statement.
Moreover, the UK Government abruptly introduced a quarantine rule for all non-essential travel to Spain to “limit any potential spread to the UK”. All people coming into the UK from Spain will have to be isolated for 14 days.
The decision sent travel and air stocks lower given that Spain is arguably the most popular holiday destination for Brits. Hence, the latest decision is likely to be yet another blow for British holidaymakers.
“I think [the decision] is regrettable, very disappointing. I have no doubt that we will see other localised outbreaks and we need to be flexible enough to deal with them as they arise over the next number of weeks and months,” said Ryanair’s chief financial officer Neil Sorahan.
Still, the low-cost airline will not cancel summer flights despite the latest decision. The carrier says it is now operating at 40% of its normal July schedule. It hopes to return to 70% by September.
Ryanair share price plunged 9% to go south of 10p for the first time since May. Shares are now threatening to return to March lows around 8p.