Ryanair flights: airline announces holiday passengers will benefit from cheaper summer fares after profit drop

• A leading budget airline has announced lower airfares for the summer months of 2024
• After experiencing a significant drop in profits due to lower spring prices, Ryanair is reducing fares to encourage higher passenger numbers
• Ryanair's fare reduction may pressure other budget airlines to lower their prices, though the impact on other airlines' pricing remains uncertain
• The cost-of-living crisis is causing customers to delay booking summer holidays, affecting pricing strategies

A leading budget airline has announced that its airfares will be "materially lower" during the peak summer months of 2024 compared to last year.

Following a significant drop in quarterly profits, Ryanair said on Monday (22 July) that lower spring prices caused profits to decrease by 46%, reaching €360 million (£303 million) for the three months ending 30 June.

The average fare dropped by 15% to €42 (£35) year-on-year, while passenger numbers increased by 10% to 55.5 million.

Chief executive Michael O’Leary said: “While (second-quarter) demand is strong, pricing remains softer than we expected, and we now expect (second-quarter) fares to be materially lower than last summer.”

The rise in passenger numbers helped mitigate the impact on overall revenue, which only fell by 1% to €363 billion (£306 billion). Passenger numbers are projected to increase by 8% overall this financial year.

What does it mean for passengers?

The figures come as the latest sign that the post-pandemic boom in pricing enjoyed by carriers is coming to an end, with other airlines also having recently warned over ticket prices.

Customers are typically waiting longer than usual to book summer holidays, which is thought to be partly a result of the cost-of-living crisis.

The news means that Ryanair passengers can expect cheaper flight prices over the summer compared to the previous year. Ryanair has said airfares will be "materially lower" during the peak summer months, indicating that the cost of flights with Ryanair will decrease.

For passengers of other airlines, the impact on flight prices is less certain. Ryanair's decision to lower fares may put pressure on other budget airlines to reduce their prices as well in order to remain competitive.

But this will depend on various factors, including the strategies and cost structures of those airlines, as well as broader market conditions in the airline industry.

Earlier in July, Jet2 said there would only be “modest” price increases this summer amid a wave of later bookings to its European destinations.

Lufthansa has also pointed to “negative market trends”, while Air France-KLM warned of a financial hit after fewer people than expected booked flights to Paris for the forthcoming Olympic Games.

Ryanair added that its performance for the rest of the summer is “totally dependent on close-in bookings and yields in August and September”. O’Leary also took aim at air traffic controllers across Europe after fewer flights took off over the period.

He said: “In the last 10 days of June we suffered a significant deterioration in European air traffic control capacity which caused multiple flight delays and cancellations, especially on first wave morning flights.”

“(This makes it) more urgent than ever that the new European Commission and Parliament deliver long-delayed reform of Europe’s hopelessly inefficient air traffic control services.”

We'd love to hear your thoughts! How do you feel about Ryanair's decision to lower fares this summer? Are you more likely to book a flight now? Share your opinions and travel plans in the comments section.