DAVY VIEW

Ryanair is not providing any guidance for FY21. The group expects to report a net loss of over €100m in Q1, with further losses in Q2 (peak summer) due to the substantial decline in traffic arising from COVID-19 fleet groundings. Ryanair comments that it expects its return to scheduled services to be rendered more difficult by state aid given to competitors. Ryanair emphasises its almost €4bn in cash and will continue to actively manage these cash resources. The statement does not surprise us in that Ryanair is actively managing the current situation to emerge even stronger than before. Q1 losses are better than we had envisaged in our downside scenarios.