Ryanair reports 21% profit drop

Darren Wood
By Darren Wood July 29, 2019 10:52

Ryanair reports 21% profit drop

Ryanair has reported a 21% drop in quarterly profit as it lowered its fares in a bid to drive up passenger numbers.

The drop in fares is a direct result of a price war taking place among several airlines in Europe.

The airline reported a quarterly profit of €243 million (£219 million) for the three months to the end of June, as the average ticket price fell 6%.

The airline said: “Average summer fares at Europe’s largest low-cost carrier will likely fall by 6% compared to last year, as airlines cut prices to stimulate demand, particularly in Germany and the United Kingdom.”

Ryanair said the drop in fares had been partially offset by 14% higher ancillary revenue from areas such as baggage, food and other fees.

Earlier this month, the airline said it was adjusting its schedules due to the worldwide grounding of Boeing 737 Max jets.

It confirmed on Monday that it expected to have 30 new Max jets in time for next summer.

The carrier has reiterated its profit forecast for the year to March 31, 2020 of between €750 million and €950 million, saying demand for optional extras like pre-booked seats and on-board refreshments was strong.

Darren Wood
By Darren Wood July 29, 2019 10:52