Ryanair sees profits slide, warns of softer fares

22nd Jul 2024 07:00

(Sharecast News) - Ryanair Holdings posted a sharp fall in quarterly profits Monday and warned fares would likely be "materially" lower than last summer.

The budget carrier saw traffic jump 10% in the three months to June, to 55.5m customers, despite "multiple" Boeing delivery delays.

However, softer fares and the early timing of Easter meant scheduled revenues were 6% lower at €2.33bn, while total revenues were down 1% at €3.63bn.

Profits after tax tumbled 46%, to €360m.

Looking ahead, Ryanair said that subject to no worsening Boeing delivery delays, 2025 full year traffic was likely to grow by around 8%, to between 198m and 200m passengers.

It noted it was continuing to work with Boeing, and had already seen an improvement in the quality and frequency of deliveries during the first quarter.

But looking to the key summer season, the Irish carrier warned: "While second quarter demand is strong, pricing remains softer than we expected, and we now expect second quarter fares to be materially lower than last summer."

Ryanair had previously guided fares would like be flat or modestly higher.

The airline continued: "The final first half outcome is totally dependent on close-in bookings and yields in August and September."

Ryanair noted that it currently had no visibility on the second half, but hoped to provide guidance for full-year profits after tax at the interim results in November.