Ryanair slashes winter capacity as virus weighs on demand

Ryanair Holdings Plc slashed its winter schedule and cut back its presence in several countries, blaming tighter travel restrictions that have hammered demand in Europe.

The shares fell after the Irish discount carrier said it will operate at about 40% of its 2019 winter capacity, down from a previous plan to run at 60% of normal levels. Ryanair will cut back the number of aircraft kept in Belgium, Germany, Spain, Portugal and in Vienna for the season, after bookings weakened materially in November and December, it said Thursday in a statement.

A resurgence in Covid-19 infections that squelched a comeback for summer air traffic is now bearing down on the slower winter season. Airlines have been clamoring for an easing of travel restrictions to spur demand, but with cases rising further there’s little sign authorities will rescind current health measures.

Rivals EasyJet Plc and Wizz Air Holdings Plc are also paring back capacity as they try and preserve cash and make it to next summer. U.K.-based EasyJet, Europe’s second-biggest discount carrier, plans to fly only 25% of capacity for the fourth quarter. Wizz, the No. 3 and with much of its network in Eastern Europe, has said it will fly 50% of its usual offering this month, and likely maintain that level through the winter if travel curbs aren’t eased.

Ryanair shares fell as much as 4.1% and were trading 3.9% lower at 8:08 a.m. in Dublin. Other airline stocks also declined, including EasyJet, Wizz and Deutsche Lufthansa AG and IAG SA.

Route Network

Ryanair said it will fly to about 65% of its route network, and seek to operate flights that are about 70% full to protect profitability. Winter closures will also be carried out at bases in Cork and Shannon, Ireland, and Toulouse, France, Ryanair said.

In August, Ryanair slashed its schedules for September and October after rising cases in Europe stifled a rebound in demand. EasyJet has said it would temporarily close Italian bases in Venice and Naples. Struggling discounter Norwegian Air Shuttle ASA is considering eliminating its short-haul base at London Gatwick airport, Bloomberg News reported this month.

Ryanair will ask staff to go on unpaid leave or job shar, it said in the statement.