Ryanair Misses Profit Estimates, Warns of Weaker Summer Fares

Ryanair has reported a 46% decline in after-tax profit for its April-June quarter, falling short of analyst estimates. The airline's profit for the period was €360 million, compared to a forecast of €538 million. This drop has been attributed to a need for increased discounting to stimulate flight sales, as consumers exhibit more cautious spending behavior. Average fares per passenger fell by 15% during the quarter, resulting in lower revenue per passenger by 10%.

CEO Michael O'Leary has indicated that it is too early to predict the company's profit for the full financial year ending on 31 March 2025, citing the uncertain consumer backdrop. The airline also warned that fares for the key summer holiday months are expected to be significantly lower than the previous year. Ryanair's shares have decreased by 24% from their peak, largely due to the weakening in fare prices.