Ryanair has warned it may axe 3,000 jobs as it wrestles with the devastating impact of coronavirus, which has brought international travel to a virtual halt.
The low-cost carrier, Europe’s largest airline, said it would begin consulting with unions over 3,000 “mainly pilot and cabin crew jobs”. It will also urge some staff to take unpaid leave, and implement pay cuts of up to 20pc, while planning the closure of a number of aircraft bases across Europe.
Ryanair expects to report a net loss of €100m for the three months to the end of June, with traffic collapsing by 99.5pc compared to the same period a year ago.
In line with most other companies, it has ripped up its financial guidance for the year.
It expects to operate just 1pc of its scheduled flights from April to June, but is still hopeful of a “likely return to services” in the summer months, its peak trading season.
Ryanair is also in talks with planemaker Boeing about a reduction in aircraft deliveries as it adjusts to a “slower and more distorted EU air travel market in a post Covid-19 world”. It does not expect passenger demand to recover for at least two years.
The airline also hit out against European governments providing state aid to its rivals, such as Lufthansa and TUI, saying its “distorts the competitive landscape”.
“Ryanair continues to call on EU government to cut passenger taxes, airport taxes, and departure taxes on an industry wide basis as a better alternative to selective State Aid ‘doping’ for flag carriers,” the company said.
Earlier this week British Airways said it would make around 12,000 staff redundant after reporting its worst ever quarterly loss.