Ryanair profit drop by 18 percent in H1, below expectations

(MENAFN) Ryanair reported after-tax profits slightly below analysts' expectations for the six-month period ending in September, with average fares dropping by 10 percent during this time. This period is typically when Europe's largest low-cost airline earns the majority of its profits. Despite the decline in fares, Ryanair indicated that the price decreases were nearly balanced out, and it anticipates that average fares in the current quarter will be only "slightly lower" compared to the same quarter last year.

The airline's after-tax profit for the first half of the year was 1.79 billion euros (USD1.95 billion), which was just shy of the 1.8 billion euros projected in a company poll of analysts. This figure also represented an 18 percent decrease from the same period a year earlier, reflecting the impact of lower fares on overall profitability.

Ryanair's shares, which represent Europe's largest airline by passenger numbers, closed at 18.02 euros on Friday, reflecting a decline of 5.5 percent since the beginning of the year. This dip in stock price was exacerbated in July when the company revealed that its profits had nearly halved in the three months leading up to the end of June.

However, the stock has since recovered, buoyed by more optimistic comments regarding pricing made by the airline during late summer. This shift in sentiment suggests that investors are regaining confidence in Ryanair’s ability to navigate the challenges posed by fluctuating fare prices and market conditions.

MENAFN04112024000045015839ID1108847495