Price pressure leads to Ryanair profit dip

Ryanair saw its market share and passenger count grow in the latest quarter, at the expense of its profit margin. The Irish airline’s revenue rose to €5.07 billion, a 3% increase from the same quarter last year. Passenger numbers increased by 9% to 59.8 million, however, profits fell 6% to €1.43 billion due to a policy of cutting prices to fill flights, resulting in a 7% drop in average ticket price to €61. Ryanair’s growth has been impeded by Boeing’s failure to deliver new 737 Gamechanger aircraft due to quality control issues and employee strikes. CEO Michael O’Leary doesn’t foresee an improvement soon. Jacob Pedersen of Sydbank doesn’t see the profit drop as a red flag, considering Ryanair’s substantial earnings and the recent normalization of travel demand. He believes Ryanair remains robust compared to peers who have had to initiate efficiency programs for recovery.