Ryanair cuts summertime fares as earnings decline

Ryanair said that it will be lowering its summer tickets following an over 50% decline in earnings.

The airline reported that aside from cost-conscious customers making reductions, the timing of the Easter vacations had a negative impact on earnings before tax, which fell to €401 million (£338 million) in the three months ending June 30 compared to the same period last year.

During that time, the average passenger ticket decreased by 15%, and the airline said that it would need to provide more discounts in the upcoming months.

Ryanair stated that instead of expecting prices to be "flat to modestly up" between July and September, it now expects them to be "materially lower" than last year.

Ryanair's average June fare decreased from €49.07 to €41.93 from the previous year.

Consumers, according to Chief Financial Officer Neil Sorahan, are just "a little bit more frugal, a bit more cautious" with their money.

Ryanair's passenger numbers climbed somewhat throughout the time, reducing the loss in its overall revenue to just 1%, despite the decline in profitability.

Nonetheless, given that other airlines have lately issued warnings about declining ticket prices, the lacklustre results may indicate that the post-pandemic pricing boom that airlines have experienced is about to come to an end.

Ryanair said on Monday that additional last-minute reservations, especially in August and September, will be "totally dependent" on the airline's success for the remainder of the summer.

Consumers are often delaying their summer bookings longer than normal, which is partially attributed to the lingering consequences of the current cost-of-living problem.

(Sources: bbc.co.uk)