Ryanair Shares Plummet Following Profit Decline

Ryanair's shares experienced a significant drop on Monday, falling 17.15% after the airline reported a 46% decrease in quarterly profit after tax. The budget airline's profit for the three months ending in June was 360 million euros ($392 million), a stark contrast to the 663 million euros reported during the same period last year. The decline was attributed to lower-than-expected fares and the Easter holiday falling in the previous quarter, despite a 10% increase in passenger traffic, which reached 55.5 million. The airline announced it is operating its largest-ever summer schedule, featuring over 200 new routes and five new bases. However, Ryanair Group CEO Michael O'Leary indicated that fare expectations for the upcoming months have been revised downward. He noted that while demand for the second quarter remains strong, pricing is softer than anticipated, leading to expectations of materially lower fares compared to last summer. O'Leary emphasized the uncertainty surrounding future financial forecasts, stating that it is too early to predict the performance for the remainder of the financial year. He highlighted the lack of visibility for the third and fourth quarters, particularly noting that the fourth quarter will not benefit from last year's early Easter holiday. The airline plans to provide more guidance on its financial outlook during its half-year results announcement in November.