Ryanair’s profits plunged in the April-June quarter, with the airline’s management to warn that this summer fares will be “significantly lower” than last year.

Europe’s largest airline has announced profits of 360 million eurosin the quarter of April – June, 46% lower compared to the corresponding period last year, despite passenger numbers registering a 10% increase at 55.5 million

The decline in profits – which came in below analysts’ estimates – sent Ryanair shares down 12.5%, according to the Guardian. The fall in the stock also affected the securities of other airlines. Shares in EasyJet fell 7.5%, Wizz Air 6.3% and IAG, the parent of British Airways and Iberia, 3.3%.

Airline shares were already under pressure after being hit by last Friday’s digital blackout which resulted in to cancel more than 5,000 flights.

Ryanair management stated that the average fare cost fell from 49.07 euros to 41.93 euros on an annual basis. He added, however, that the increase in the number of passengers contributed to limit the fall in total revenues, which fell by 1% to 363 billion euros.

At the same time, he emphasized that although he expects strong demand this summer, with the number of passengers to be increased by 8% in the whole of the corporate year, “prices are lower than its expectations”.

“Now, we estimate that fares in the second quarter (July – September) will be significantly lower than last summer. The result, however, for the entire first semester, depends entirely on the bookings and performance of August and September,” the company noted.

“Lower fares may be great for travelers, but they are not good for airlines trying to boost their finances after the pandemic,” said Dan Coatsworth, investment analyst at AJ Bell. “This puts more pressure on businesses to fill their aircraft to maximize revenue. Although travel demand has rebounded since the pandemic, travelers don’t seem willing to book long-term. This is likely either because they are feeling the pressure of high interest rates or because they are waiting to spot an opportunity.”