Ryanair profit plunges on weaker holiday travel demand

Shares of Ryanair (ISE: RYA) dropped 2.55% on Monday as Europe’s largest low-cost carrier lowered full-year guidance after profit was hit hard in the fiscal third quarter ended December 31. Ryanair reported a 93% decline in quarterly profit to €15 million.

The airline attributed the sharp profit decline mainly to softer travel demand over the holidays after its fares were removed from certain travel websites in early December. Passenger volumes rose nearly 8% but planes were slightly less full compared to last year.

Read More News:
Superdry explores restructuring and closures to cut costs

Ryanair still expects to carry 183.5 million passengers in the current fiscal year ending March 31, 2024. That would represent annual traffic growth of 8.8% year-over-year. The company narrowed its full-year profit forecast to a range of €1.85 billion to €1.95 billion, citing risks around the Boeing delivery schedule and global events.