Ryanair Plunges After Projecting 'Materially Lower' Summer Fares

Core Insights - Ryanair reported a first-quarter profit of 360 million euros ($391.6 million), which is nearly a 50% decline compared to EUR663 million in the same quarter last year [4][5] - Average fares decreased by 15% year-over-year to EUR41.93, although this was partially offset by a 10% increase in customer numbers to 55.5 million [4][5] - The company anticipates that summer fares will be "materially lower than last summer," a shift from previous expectations of fares being "flat to modestly up" [5][6] Financial Performance - First-quarter profit was reported at 360 million euros ($391.6 million), down from EUR663 million in the previous year [4][5] - Average fares fell by 15% year-over-year to EUR41.93 [4] - Customer numbers increased by 10% to 55.5 million [4] Market Reaction - Ryanair's American depositary receipts (ADRs) fell more than 17% to $94.12, marking a nearly 30% decline in 2024 [2][5] Operational Challenges - The company experienced significant deterioration in European air traffic control capacity in the last 10 days of June, leading to multiple flight delays and cancellations, particularly affecting morning flights [5]