Ryanair's Q3 financial report

Ryanair Profits Plunge 46% as Shares Tumble 13% Amid Lower Summer Fare Outlook

Jul 22, 2024, 07:41 AM

Ryanair has reported a significant drop in its quarterly profits, missing estimates as the budget airline faces a challenging summer travel period. The company announced that its profits fell by 46% in the first quarter, dropping to €360 million from €663 million a year ago. This decline is attributed to a need to stimulate flight sales amid heightened consumer caution, leading to a 15% fall in average fares. Ryanair has subsequently cut its outlook for ticket prices in the crucial summer travel period, anticipating that fares will be materially lower in the second quarter compared to the previous year. The airline's shares have tumbled 13% following the announcement, with other budget carriers like Wizz Air and EasyJet also experiencing declines of 8.7% and 7.2%, respectively. Ryanair's CEO mentioned attempts to close off some cheap seats were met with resistance, necessitating the reopening of lower-cost seats. The fare warning has had a ripple effect on the broader airline industry, affecting rival stocks and market sentiment.