Ryanair experienced a substantial 46% decline in profits for the April to June quarter, attributing this drop despite an increase of passenger numbers by 10% during that period. The budget airline reported earnings of €360 million (£303 million), contrasting with their previous year's results and also missing analyst forecasts, causing a decline in stock value by 12.5%.
The decreased performance influenced other publicly traded airlines, such as EasyJet which fell 7.5%, Wizz Air at 6.3% down, and IAG's shares slipping 3.3%. The average cost of a ticket also reduced from €49.07 to €41.93 compared to the previous year. However, Ryanair saw only an overall 1% decrease in total revenues amounting to €363 billion due to increased passenger numbers.
Looking ahead to the summer months, Ryanair anticipates strong demand but expects fares during July to September will be significantly lower than those of the previous year. This prediction is contingent on the performance of bookings in August and September. The company cited a trend where customers are delaying their summer flights purchases more than usual, echoed by Jet2's recent statements about potential modest price increases for this year.
Ryanair also faced challenges due to air traffic control constraints during the last ten days of June, resulting in numerous flight delays and cancellations, especially those departing on early morning flights. The CEO Michael O’Leary emphasized that urgent reform is required within Europe's aviation infrastructure for more efficient service delivery.
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