BUDGET airline Ryanair has said its profits after tax dipped sharply by almost half in its first quarter, between April and June, as cost-conscious passengers reined in their spending. The Dublin-listed carrier also pointed to the timing of Easter as contributing to the disappointing performance.
Ryanair, famously a no-frills airline, reported profits of €360 million (£303 million) in the quarter, 46% lower than the same period last year, despite passenger numbers rising 10% to 55.5 million.
The group’s earnings fell to €401m (£338m) in the three months to June 30 compared with the same period last year and the results drove the share price down 12.5% in early trading on Monday.
Ryanair, easyJet, TUI, Jet2, Wizz Air reveal state of play
Ryanair, Europe’s largest airline, cautioned that fares this summer would be “materially lower” than last year as it offers further discounting to entice passengers who are coping with rising inflation and the cost of living crisis. The average fare in the first quarter fell 15% to €42 (£35) year on year.
The group’s chief executive Michael O’Leary said the airline is operating its largest-ever schedule this summer with over 200 new routes and five new bases “as we deliver as much low fare growth as possible for our passengers and airport partners in FY25”.
Mr O’Leary took aim at air traffic controllers across Europe, stating: “In the last 10 days of June, we suffered a significant deterioration in European ATC capacity which caused multiple flight delays and cancellations, especially on first wave morning flights.”
Describing Europe’s ATC services as “hopelessly inefficient”, the outspoken CEO said: “It is more urgent than ever that the new EU Commission and Parliament deliver long-delayed reform of Europe’s hopelessly inefficient ATC services.
“This can be achieved by proper staffing of Europe’s ATC services and protecting overflights (during national strikes) which would deliver revolutionary environmental improvements in EU air travel.”
Shares in Ryanair have fallen 24% since April, partly due to fare weakness.
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