Ryanair chief says recessionary feeling in Europe is limiting fares

By Steve Goldstein

Ryanair could even cut prices if needed to keep its planes full, CEO says

Ryanair's chief executive blamed what he called a "recessionary feel around Europe" for the airline's inability to increase prices very much.

The Ireland-based no-frills carrier said peak fares will be "flat to modestly ahead of last summer."

"It has been a little bit surprising that pricing hasn't been stronger," CEO Michael O'Leary said on a conference call Monday following the airline's earnings report. "And we're not quite sure whether that's just consumer sentiment or recessionary feel around Europe."

He added that Ryanair could even cut prices if needed to keep its planes full.

O'Leary first warned about prices two weeks ago.

His comments Monday came as the airline said its annual profit rose 34% to EUR1.92 billion ($2.1 billion) on a 25% increase in revenue to EUR13.44 billion. Ryanair's traffic rose 9% and is up 23% from pre-COVID levels.

O'Leary said it's too early to give financial guidance, citing the uncertainty over fares as well as the wars in Ukraine and the Middle East, extensive air-traffic control disruptions and the risk that Boeing (BA) deliveries could slip further.

U.S.-listed shares of Ryanair (RYAAY) (IE:RYA) fell 2%. The stock has dropped 8% this year.

-Steve Goldstein

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05-20-24 1040ET

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