Ryanair says profit nearly halves in first quarter

LONDON — Irish no-frills airline Ryanair on Monday said net profit almost halved in its first quarter as lower air fares offset a jump in demand.

Profit after tax dropped 46 per cent to 360 million euros ($392 million) in the three months to the end of June compared with 12 months earlier, Ryanair said in a results statement.

Passenger numbers increased 10 per cent to 55.5 million and average air fares dropped 15 per cent, the Dublin-based carrier added.

The airline said it was impacted also by the timing of Easter this year.

Ryanair said the lower-fares environment had continued into its second quarter.

"While second-quarter demand is strong, pricing remains softer than we expected, and we now expect Q2 fares to be materially lower than last summer," Chief Executive Michael O'Leary said in the release.

He added that full-year traffic was expected to grow 8 per cent, or as much as 200 million passengers, as long as Ryanair did not face further delay to deliveries of new Boeing planes.