Ryanair Plans Summer Fare Cuts Despite Profit Slump

Have the customers’ calls been heard? Ryanair is preparing to reduce its summer fares while it has recorded a 46% drop in pre-tax profit to 401 million euros in the three months prior to June 30 compared to last year, reports Air Journal. A 15% drop in average passenger fares was recorded during the period. "Fares are now materially below last year and fares... continue to deteriorate," said Ryanair CEO Michael O’Leary in a presentation announcing its latest results.

According to Chief Financial Officer Neil Sorahan, consumers were simply "a bit more frugal, a bit more cautious" with their money. However, the drop in profits does not mean a drop in the number of Ryanair passengers. This has slightly increased, which has helped limit the decline in its overall revenue to only 1%.

A few weeks ago, Moroccan travelers had criticized Ryanair for the high prices of domestic flights.