Ryanair profits rise despite forced summer fare cuts
- Ryanair is being forced to cut summer fares to £17 due to lower demand.
- Despite the fare cuts, the budget airline's profits are on the rise.
- The airline predicts cheaper-than-expected summer fares.
Ryanair, a budget airline, is offering special deals to fill flights due to fewer bookings during the week. They have appointed Amber Rudd, a former government minister, to their board. The airline's bookings for summer are good, but they are offering more €19.99 deals than expected for midweek flights. Demand this quarter has been lower than anticipated, and prices for July and August are expected to be similar to last year. Ryanair's profit increased by 34% to €1.92 billion in the year through March, with 9% more passengers than the previous year. The airline faced challenges due to higher staff expenses, increased fuel costs, and delays in Boeing plane deliveries. Despite these challenges, Ryanair reported strong earnings and aims to increase passenger traffic by 8% in the coming year. The company is cautious about providing profit guidance due to potential conflicts in Ukraine and the Middle East. Ryanair expects to carry between 198 and 200 million passengers this year if new aircraft deliveries stay on track. Ryanair has seen a steady increase in demand for flights since Covid restrictions were lifted. The airline carried 183.7 million passengers in the year to March, with average fares rising by 21% to €49.80. Bookings for this summer are ahead of last year, but fares are not as high as expected for April, May, and June. The airline remains optimistic about summer fares for 2024. CEO Michael O'Leary mentioned a possible economic downturn in Europe affecting airfare growth.