The low-cost carrier says fares continue to fall as the peak summer holiday period strengthens, as demand for flights has been weaker than expected.
Ryanair has reported weaker-than-expected profits for its first financial quarter, citing the need to “stimulate” flight sales amid heightened consumer caution.
Europe’s largest carrier by passenger numbers said it discounted more than expected in the three months to the end of June, with average fares down 15%, and it sees no end in sight to the need for cuts.
Profit after tax was €360m (£303m), a drop of 46%.
Market analysts had expected a figure above 530 million euros.
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The low-cost carrier reported a 10% drop in revenue per passenger overall, with so-called ancillary revenue – that is, sales covering add-ons such as checked baggage – flat.
Operating costs have also decreased.
Ryanair reported an 11% increase, with higher wages offsetting lower fuel bills.
Group chief executive Michael O’Leary warned shareholders that prices during the key summer holiday months would be significantly lower due to a weaker-than-expected consumer environment.
He said prices continued to fall.
Mr O’Leary told shareholders: “While second quarter demand is strong, prices remain lower than expected, and we now expect second quarter rates to be significantly lower than last summer. [previously expected to be flat to modestly up]”.
He said it was too early to forecast earnings for the full financial year, which ends March 31, 2025, because of the weakening airfare environment.
Ryanair also said it had not yet assessed the cost of the disruption caused by the global information technology collapse A cold snap hit aviation hard on Friday, forcing the cancellation of thousands of flights worldwide.
The disruptions continued into the early weekend, with crews and aircraft out of position.
Ryanair has also faced other operational pressures in recent times, including the impact of air traffic controller strikes in France.
Ryanair achieves record summer schedule despite blows to growth ambitions.
Boeing is behind schedule in delivering 737 MAX 8 planes that will help the airline improve efficiency.
Ryanair said it expected to fall 20 short of Boeing’s contracted deliveries by the end of the month, but said the planemaker, limited in its production volumes due to quality issues, had raised its standards.