Ryanair posts quarterly loss, Signature Aviation sees 'improving trend'

London open

The FTSE 100 is expected to open four points higher on Monday, having closed down 1.41% at 6,123.82 on Friday.

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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.

Newspaper round-up

Everyone over 40 would start contributing towards the cost of care in later life under radical plans being studied by ministers to finally end the crisis in social care, the Guardian can reveal. Under the plan over-40s would have to pay more in tax or national insurance, or be compelled to insure themselves against hefty bills for care when they are older. The money raised would then be used to pay for the help that frail elderly people need with washing, dressing and other activities if still at home, or to cover their stay in a care home. – Guardian

The UK’s economic recovery from the Covid-19 crisis could take 18 months longer than expected with hopes of a V-shaped recovery fading fast, according to a leading economic forecaster. Britain’s economic output is not expected to return to its 2019 level until the end of 2024, the EY Item Club said on Monday in its latest projections on the health of the UK economy. It had previously expected GDP to match fourth-quarter 2019 size in early 2023. – Guardian

Airline regulators are expected to this week launch a crackdown on carriers which have failed to refund families for flights cancelled due to coronavirus, as the industry reels from new restrictions over Spain. – Telegraph

Entrepreneurs and small business owners are thinking of selling up earlier than they had planned — and in some cases, it is claimed, of even leaving the country — because of worries over possible tax changes. Rishi Sunak is considering an overhaul of capital gains tax as he tries to find ways to balance the books in the wake of the coronavirus pandemic. – The Times

A Mastercard executive allegedly was involved in a money-laundering operation at a bank accused of terrorist financing and organised crime that had links to Wirecard, the disgraced German payments group. A report commissioned by the owners of FBME Bank in Cyprus uncovered evidence of apparent criminal activity, including an alleged operation designed to trick the international card payments system into processing high-risk and potentially illegal transactions. – The Times

US close

Stocks on Wall Street finished in negative territory on Friday, with the Dow Jones Industrial Average falling 0.68% to close at 26,469.89.

At the same time, the S&P 500 slipped 0.62% to 3,215.63, and the Nasdaq Composite was off 0.94% at 10,363.18.