The reduction in ticket sales has affected the company’s performance

Bad news for Ryanair: The Irish airline announced on Monday a net profit of 360 million euros for the first quarter of its staggered financial year (April to June), a year divided by nearly 2 times. The reason given by the company to justify this disappointing result is the price of tickets. Their average ticket price has fallen by 15% in 12 months: “If passenger traffic increases by 10% to 55.5 million passengers”, then this is a loss of 15%. Higher-than-expected discountsthe company noted in a press release.

However, the company’s managing director, Michael O’Leary, estimated in a press conference announcing the results that the situation was temporary and that prices would start to rise again in the medium term. But he warned that despite “strong demand”, prices would remain “significantly lower than last year” (previously they were expected to remain stable or even rise slightly). Dan Coatsworth, an analyst at AJ Bell, said lower prices were “good for passengers but bad for airlines trying to provide services”. Get their finances back on track after the pandemic ».

Boeing delivery delays affected

Low airfares aren’t the only reason Ryanair is in trouble. Indeed, delivery delays from Boeing also hit the airline’s performance and traffic last year. But this year, the company said that “the quality and frequency of deliveries improved in the first quarter,” although “there remains a risk of a further decline in Boeing deliveries.” The Irish company also said in May that it was in talks for compensation from manufacturers that compete with Airbus. Ryanair Finance Director Neil Sorahan said when presenting its first-half results that a deal had even been reached and a “modest credit” of a “confidential” amount had been obtained.

Michael O’Leary said the group’s annual performance would depend on possible “adverse developments” such as ongoing conflict in Ukraine and the Middle East, or further delivery delays from Boeing. Meanwhile, the manager said Ryanair intended to implement the “largest summer flying programme” in its history, with “more than 200 new routes” and five new bases.