Irish budget airline Ryanair plans to retrench 3000 staff members and reduce the employee wages by up to 20% as COVID19 continues to hurt businesses. The airline expects passenger numbers and pricing to return to pre-COVID19 levels in 2022 by the earliest.
Pilots and cabin crew remain the most affected by the recent developments with the airline expecting to ground more than 99% of its flights until July.
The airline is on course to close a number of bases across Europe in a cost-cutting exercise until the resumption of air travel. The restructuring exercise will commence in July with the airline expecting losses to hit more than €100m ($110 million) in the three months to the end of June.
Other measures include negotiations with Boeing to reduce the number of aircraft deliveries in the next 24 months.
The chief executive Michael O’Leary extended his 50% pay cut to the end of March 2021. The airline said it will ferry 35% fewer passengers in the current financial year, than the original target of 154 million passengers for the full-year ending March 2021.