Ryanair reports 10% drop in average fares due to consumer ‘spending pressure’

Ryanair announced that its average fares had fallen by a 10th this year due to pressure on consumer spending, but it warned of ongoing Boeing delivery delays, saying this was putting pressure on profits.

The low-cost airline said more consumers were switching to Ryanair from rival brands.

It reported pre-tax profits of €2.1bn (£1.8bn) for the six months to the end of September; This is 16% lower than the same period last year.

Earnings were impacted by a 10th year-on-year decline in average flight fares; This is due in part to pressure on consumer spending due to efforts to offset high interest rates and higher costs of living, it said.

But lower prices also brought more customers; The airline reported a 9% increase in total passengers during the half-year period, reaching a record 115 million.

Ryanair said it expects to fly around 200 million passengers for the full year and demand for flights has remained strong in recent weeks.

But that’s conditional on “no worsening of existing Boeing delivery delays,” citing ongoing strikes among the aerospace giant’s factory workers that have halted aircraft production.

Ryanair also said future flights could be affected by staff shortages and ongoing risks from conflicts in Ukraine and the Middle East.

According to the group, the decline in prices has also started to ease recently.