Ryanair, the low-cost airline, announced on Monday that its profit for the first quarter of the year has nearly halved, following a surge in demand due to lower airfares. The airline reported a 46% decline in net profit for the quarter ending in June, dropping to €360 million ($392 million), compared to the same period last year.
Despite the significant reduction in profit, the number of passengers carried by Ryanair increased by 10%, reaching 55.5 million. This growth was driven by a 15% decrease in average airfares, according to the Dublin-based airline.
Ryanair also noted that the impact of lower fares was partly influenced by the timing of Easter this year, which affected travel patterns and demand.
Looking ahead, Ryanair anticipates that the effects of reduced fare levels will continue into the second quarter. According to Ryanair’s Chief Executive Officer Michael O’Leary, “Although demand remains strong in the second quarter, pricing has proven to be more competitive than we had anticipated. We expect second-quarter fares to be lower compared to last summer.”
O’Leary also mentioned that, barring any further delays in the delivery of new Boeing aircraft, Ryanair expects the number of passengers to increase by 8% over the year, reaching approximately 200 million.
