by Conor Humphries

DUBLIN (Reuters) – Ryanair on Monday reported an after-tax profit just below analysts’ forecasts for the six months to September, hurt by a 10 percent drop in ticket prices during the period when the major airline low-cost airline from Europe usually makes the majority of its profits.

The Irish group, the number one in Europe by the number of passengers carried, however declared that the fall in ticket prices is moderating and that average fares for the current quarter would only be “slightly lower” than those of the same period last year.

Ryanair’s profit after tax came in at €1.79 billion for the first half of its fiscal year, just shy of the €1.8 billion consensus figure provided by the group , but 18% lower than for the same period of 2023.

“Forward bookings suggest that demand in the third quarter is strong and price declines appear to be easing,” chief executive Michael O’Leary said in a statement, referring to the final three months of the year.

Michael O’Leary also indicated that Ryanair would reduce its traffic growth target for its next financial year, which ends on March 31, 2026, to 210 million passengers instead of the 215 million previously planned, to take into account delays in the delivery from Boeing.

This figure is based on the assumption that Boeing delivers 15 of the 30 737 MAX planes expected to arrive by next summer but, according to CFO Neil Sorahan, “there is a high risk around this number” due to of the strike at the American manufacturer.

Ryanair declined to provide a profit forecast for the current year, with Neil Sorahan saying it could be assumed it would be lower than last year.

The airline’s share price has fallen 5.5% since the start of the year, partly due to a halving of profit in the quarter that ended in June, although t recovered somewhat following more positive comments on the recovery in ticket prices.

( Diana Mandiá, edited by Augustin Turpin)

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