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

Ryanair has revealed its average fares declined by a 10th this year amid pressure on consumer spending, but said this weighed on profits as it warned over ongoing Boeing delivery delays.

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

It reported a pre-tax profit of 2.1 billion euros (£1.8 billion) for the six months to the end of September, 16% lower than the same period last year.

Earnings were affected by average air fares declining by a 10th year on year, which it said was partly driven by pressure on consumer spending amid higher interest rates and efforts to offset higher living costs.

But lower prices also brought in more customers, with the airline reporting a 9% jump in total passengers to a record 115 million for the half-year period.

Ryanair said it is expecting to fly some 200 million passengers over the full year, with demand for flights remaining strong in recent weeks.

But this is subject to there being “no worsening of current Boeing delivery delays”, referring to ongoing strikes among the aerospace giant’s factory workers that have halted production of its aircraft.

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

The decline in prices has also started to ease off recently, according to group.