Companies Earnings Update
Ryanair posted a €185m loss for the three months to June but cautioned about the impact that a second wave of coronavirus infections might have even as it stood by plans to gradually resume flights. "It is impossible to predict how long the Covid-19 pandemic will persist, and a second wave of Covid-19 cases across Europe in late autumn, when the annual flu season commences, is our biggest fear right now," the company said. Looking ahead, Ryanair said that the trading year through March 2021 would be challenging, not least due to possible "adverse trading consequences" should the UK leave the European Union at the end of the year without a deal.
Signature Aviation said on Monday that like-for-like revenue in its first half was down 31% year-on-year due to the Covid-19 pandemic, although it did remain net cash flow positive in the second quarter. The FTSE 250 aviation services company wasi flying activity was showing an improving trend, down by 32% in June in the US, compared to 77% in April. It said it had now brought all US employees back from furlough, and had agreed a “precautionary” covenant waiver on its revolving credit facility for December 2020 and June 2021.