Shares fall on falling ticket prices and lower quarterly profits

Ryanair Its shares fell on Monday after the company announced a 46% fall in quarterly after-tax profits and lower-than-expected summer fares.

Ryanair shares were down 13.59% at 10:18 a.m. London time.

this Low-cost airlines say Ryanair posted a profit of 360 million euros ($392 million) after tax in the three months to the end of June, its first quarter. That compared with a profit of 663 million euros in the same period last year, the company said.

Ryanair said lower-than-expected fares and the Easter season falling in the previous quarter were responsible for the drop in profits.

Ryanair said on Monday that the figures were a record despite a 10% rise in traffic to 55.5 million in the quarter. Ryanair said it was operating its “largest schedule ever” this summer, with more than 200 new routes and five new bases.

However, Ryanair Group CEO Michael O’Leary said in a statement that fares were expected to be lower than expected over the next three months.

“Despite strong demand in the second quarter, fares remain below our expectations and we now expect second quarter fares to be materially lower than last summer (previously expected to be flat to slightly higher),” he said.

O’Leary added that it was too early to make predictions about performance for the rest of the financial year.

“As is normal at this time of year, our forecasts for Q3 and Q4 are virtually zero, although Q4 will not benefit from last year’s early Easter. It is too early to provide a meaningful FY2025 earnings forecast, although we hope to be able to do so with our first half results in November,” he said.

Other European airlines followed Ryanair’s fall on Monday, with another low-cost carrier EasyJet It fell by more than 6%. Jet 2 Down 4%, Hungarian Airlines Wizz Air Down more than 6%.