A Ryanair passenger plane lands at Cologne/Bonn Airport.
Thomas Banneyer | Image Alliance |
Ryanair shares fell on Monday after the corporate said its quarterly profit after tax fell 46% and that fares could be lower than expected throughout the summer months.
At 8:57 a.m. London time, Ryanair’s share price was down 12.2 percent.
The Low-cost airline said Profit after tax within the three months to the top of June – Ryanair’s first quarter – was 360 million euros ($392 million), compared with 663 million euros in the identical period last yr, the corporate said.
Ryanair cited weaker than expected flight prices and the indisputable fact that Easter business fell into the previous quarter as reasons for the drop in profits.
This got here despite a ten% increase in passenger traffic to 55.5 million within the quarter, Ryanair said on Monday. The airline said it was operating its “biggest schedule ever” this summer with over 200 latest routes and five latest bases.
However, Michael O’Leary, CEO of the Ryanair Group, said in an announcement that lower than expected airfares were expected over the following three months.
“Although demand is strong in the second quarter, prices remain lower than expected and we now expect airfares in the second quarter to be substantially lower than last summer (previously we had expected prices to be flat or slightly higher),” he said.
O’Leary added that it was too early to forecast the remaining of the fiscal yr.
“As is typical at this time of year, we have virtually no visibility for Q3 and Q4, although Q4 will not benefit from last year’s early Easter. It is too early to provide meaningful PAT guidance for FY2025, although we hope to do so at our H1 results in November,” he said.
Other European airlines followed Ryanair’s share price decline on Monday. Budget airline EasyJet lost greater than 6 percent, while Jet2 fell 4 percent and Hungarian airline Wizz Air fell greater than 6 percent.
