Budget airline Ryanair reports drop in first half-year profits

DUBLIN - Low-cost Irish airline Ryanair says its profit before tax of €2.1 billion ($2.3 billion) dropped for the first half of the year, reported German news agency dpa.

This is lower than the €2.5 billion seen in the same period a year ago, primarily affected by lower airfares.

Total revenue for the first half rose by 1 per cent to €8.69 billion. Scheduled revenue fell by 2 per cent to €5.95 billion.

Factors impacting these figures included the shift of half of Easter into the previous year's fourth quarter and out of the first quarter, consumer spending pressures driven by higher interest rates and inflation reduction efforts, and a decrease in online travel agent bookings ahead of summer 2024.

These conditions necessitated more price stimulation than initially expected, with first-quarter fares decreasing by 15 per cent and second-quarter fares by 7 per cent, as Ryanair maintained its "load active/yield passive" pricing policy, according to Ryanair chief executive Michael O'Leary.

Net profit declined to €1.791 billion or €1.59 per share, down from €2.178 billion or €1.90 per share last year.

Operating profit decreased by 17 per cent to €2.015 billion from €2.416 billion a year ago. However, revenue for the period grew by 1 per cent to €8.692 billion from €8.575 billion in the previous year.

For the first half of the year, traffic increased by 9 per cent to 115 million passengers, while the load factor remained steady at 95 per cent.

The company's board has declared an interim dividend of €0.223 per share, set to be paid in late February 2025. - BERNAMA-dpa