Ryanair Stock Dips On Weak Q1 Profit, Q2 Fares Warning

(RTTNews) - Shares of Ryanair Holdings plc were losing more than 14 percent in the pre-market activity on the Nasdaq after the European airline reported Monday sharply lower first-quarter profit, hit by higher operating costs and weaker than expected air fares. Traffic grew from last year despite multiple Boeing delivery delays, but load factor declined.

Looking ahead, the company trimmed forecast for second-quarter fares, and said it sees higher traffic for fiscal 2025.

Ryanair Group CEO Michael O'Leary, said, "FY25 traffic is expected to grow 8 percent (198m to 200m passengers), subject to no worsening Boeing delivery delays. … While Q2 demand is strong, pricing remains softer than we expected, and we now expect Q2 fares to be materially lower than last summer (previously expected to be flat to modestly up). The final H1 outcome is, however, totally dependent on close-in bookings and yields in Aug. and Sept.

The CEO further said the final fiscal 2025 outcome remains subject to avoiding adverse developments during the year, especially given continuing conflicts in Ukraine and the Middle East, repeated ATC shortstaffing and capacity restrictions, or further Boeing delivery delays.

In its first quarter, profit after tax fell 46 percent to 360 million euros from last year's 663 million euros.

Operating costs grew 11 percent from the prior year to 3.26 billion euros as fuel hedge savings offset higher staff and other costs which was in part due to Boeing delivery delays.

Revenue edged down 1 percent to 3.63 billion euros from last year's 3.65 billion euros. Scheduled revenue in the quarter fell 6 percent from the prior year to 2.33 billion euros.

Traffic grew 10 percent to 55.5 million customers from prior year's 50.4 million customers, despite multiple Boeing delivery delays. Meanwhile, average fares were down 15 percent to 41.93 euros, in part, to the absence of the first half of Easter which fell into March, and more price stimulation than had previously expected.

Load Factor dropped 1 percentage point to 94 percent from 95 percent a year ago.

In the pre-market activity on the Nasdaq, Ryanair shares were trading at $98.07, down 14.21 percent.

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