Ryanair has announced a significant drop in profit after tax

European budget airline Ryanair, one of the largest in its segment, announced a significant decrease in profit after tax by 46% in the second quarter of 2024. The main reason for the fall in financial indicators was the decrease in air fares.

According to the results of the second quarter of 2024, the company's net profit was 360 million euros, which is a significant drop compared to the 663 million euros received in the same period of 2023. According to Ryanair's financial report, the average fare for flights in April-June 2024 fell by 15% to €41.93, compared to €49.07 in the second quarter of the previous year.

One of the reasons for the financial losses was the shift of the Catholic Easter in 2024 to the first quarter, while in 2023 this holiday fell on the second quarter. During the Easter holidays, the demand for air travel usually increases, which has a positive effect on the revenues of the airlines. This shift to the holiday period has had a negative impact on Ryanair's revenues.

The drop in tariffs could not be compensated even by additional services, such as the transportation of hand luggage, luggage, seat selection on the plane, and the sale of food and drinks on board. In the second quarter of 2024, the average revenue from additional services per passenger was 23.4 euros, slightly higher than the figure of 23.3 euros in the same period of 2023.

At the beginning of 2024, Ryanair predicted an increase in fares in the summer season due to a shortage of aircraft in the market. However, these predictions did not come true. Meanwhile, rival Wizz Air has already faced problems with the grounding of around 50 Airbus A320neo family aircraft due to defects in the new Pratt & Whitney GTF engines. Ryanair has also faced difficulties due to delays in deliveries of new Boeing 737−8200 MAX aircraft due to assembly quality issues.

Ryanair's financial statement data covers the period from 1 April to 30 June 2024, and for ease of understanding, the material indicates periods of the calendar year.