Ryanair to slash fares amid slump in profits
Ryanair, Europe's largest airline by passenger numbers, has announced plans to significantly reduce fares in response to a slump in profits. The airline has revealed that the average fare is 15% cheaper this summer compared to last year, as it engages in aggressive discounting to attract and retain customers.
Ryanair's Group Chief Executive, Michael O'Leary, addressed shareholders with a warning that fares during the peak summer holiday months would be considerably lower than anticipated due to heightened consumer caution. This softer demand has led to weaker-than-expected profits for the airline's first financial quarter.
"While Q2 demand is strong, pricing remains lower than we expected, and we now forecast that Q2 fares will be materially lower than last summer," O'Leary explained, noting that previous expectations had predicted fares to be flat or modestly up.
The airline's strategy to stimulate flight sales amid this challenging consumer backdrop involves further fare reductions. Ryanair's commitment to lowering prices is aimed at maintaining customer interest and boosting ticket sales during a period of economic uncertainty.
As the travel industry continues to navigate fluctuating demand and consumer behaviour, Ryanair's move to cut fares reflects its adaptability and focus on staying competitive in the market. Passengers can expect more affordable travel options from the budget carrier in the coming months.
