Ryanair Faces 46% Profit Plunge, Warns of Lower Summer Fares

Ryanair reported a 46% drop in after-tax profit for its April-June quarter, falling short of analyst expectations. The airline warned of significantly lower summer fares this year. With a profit of 360 million euros, the quarter marks a sizeable difference from the forecasted 538 million euros. Shares have already dipped 24% from April peaks due to fare weaknesses.

Ryanair on Monday reported a staggering 46% fall in after-tax profit for its April-June quarter, missing analyst estimates and issuing a warning that summer fares would be significantly lower than last year. The after-tax profit for the first quarter of Ryanair's financial year was 360 million euros ($392 million), far below the 538 million euros predicted by analysts.

The airline saw a 15% drop in average fares per passenger as it had to engage in more aggressive pricing strategies than anticipated. Chief Executive Michael O'Leary stated, 'While Q2 demand is strong, pricing remains softer than we expected, and we now expect Q2 fares to be materially lower than last summer.'

O'Leary also noted it was too early to predict profits for the full financial year ending March 31. Shares of the Irish airline, Europe's largest by passenger numbers, have already fallen by 24% since April 8 due to weak fare trends.