The budget carrier expects to ground the majority of its aircraft over the next seven to 10 days.

It will also reduce seat capacity by somewhere in the region of 80% during April and May.

“A full grounding of the fleet cannot be ruled out,” said Ryanair in a trading update issued on Monday (16 March).

“Over the past seven days, Italy, Malta, Hungary, Czech Republic, Slovakia, Austria, Greece, Morocco, Spain, Portugal, Denmark, Poland, Norway and Cyprus have imposed flight bans of varying degrees. There has [also] been severe reduction of ATC [air traffic control] and essential airport services.

“Ryanair expects the result of these restrictions will be the grounding of the majority of its aircraft fleet across Europe over the next seven to 10 days.

“In those countries where the fleet is not grounded, social distancing restrictions may make flying to all intents and purposes, impractical – if not impossible.”

‘Substantial decline in bookings’

The airline is taking steps to reduce operating expenses and improve cash flow. These include: grounding surplus aircraft; deferring all capital expenditure and share buybacks; freezing recruitment and discretionary spending, and implementing a series of voluntary leave options; temporarily suspending employment contracts; and significantly reducing working hours and payments.

“We are working with our people and our unions across all EU countries to address this extraordinary and unprecedented Covid-19 event, the impact and duration of which is, at this time, impossible to determine,” said Ryanair.

In its statement, Ryanair said the group was in a strong financial position, with cash and equivalents in excess of €4 billion.

“Our focus now is on completing as much of the scheduled flying programme as is permitted by national governments over the next seven days so we can repatriate customers, where possible, even as flight bans are imposed and ATC and essential airport services are reduced.

“We have seen a substantial decline in bookings over the last two weeks, and we expect this will continue for the foreseeable future. We will continue to monitor demand, as well as government flight restrictions, and we will continue to make further cuts to schedules as necessary.”

Ryanair group chief executive Michael O’Leary added: ”We are doing everything we can to meet the challenge posed by the Covid-19 outbreak, which has over the last week caused extraordinary and unprecedented travel restrictions to be imposed by national governments, in many cases with minimal or zero notice.

“We are communicating with all affected passengers by email and SMS, and we are organising rescue flights to repatriate customers, even in those countries where travel bans have been imposed.

“Our priority remains the health and welfare of our people and our passengers, and we are doing everything we can to ensure that they can be reunited with their friends and families during these difficult times.

“With a very strong balance sheet and substantial cash liquidity, we can, and will, with appropriate and timely action, survive through a prolonged period of reduced or even zero flight schedules.”