The aviation sector continues to suffer due to the COVID pandemic

Low-cost airline Ryanair stated that it continues to still face a “challenging” environment and that it might finish the fiscal year “somewhere between a small loss and breakeven.”

The Irish airliner reported a 273 million euro loss for the period between April and June as lockdowns meant most flights over the Easter period were canceled.

Together with European nations continuing to be cautious over the easing of travel restrictions, demand in travel has been slow to grow.

The figure beat a forecast from analysts which was compiled by the company

In comparison, the airline posted a 185 million euro loss over the same first-quarter period a year ago.

At the same time, operating costs also increased, deteriorating the company’s balance sheet. Over the year to June, costs rose by 116%, driven mostly by fuel, airport and route charges.

However, Mr. O’Leary expects traffic to pick up in the coming weeks.

However, the outlook is highly dependent on the pandemic and successful vaccination campaigns.

Ryanair shares are up 42% from a year ago

Shares in the airline traded 2.5% higher in early trade on the back of the results.

“We’re encouraged by the group’s progress, but it may have to toe the precarious line between low fares and high costs for some time.”