Ryanair slashes winter capacity as Covid-19 weighs on demand

Bloomberg

Ryanair Holdings Plc slashed its 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%. Ryanair will reduce 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.
A resurgence in Covid-19 infections that torpedoed a comeback for summer air traffic is now bearing down on the slower part of the year. Airlines have been clamouring 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. EasyJet, Europe’s second-biggest discount carrier, plans to fly only 25% of capacity for the fourth quarter. Wizz, the third largest and with much of its network in Eastern Europe, has said it will fly 50% of its usual offering this month, and will likely maintain that level through the winter. Ryanair’s decision has “been forced upon us by government mismanagement of EU air travel,” CEO Michael O’Leary said.