Q1 average fares 41.93 eur, down 15% (Il Sole 24 Ore Radiocor) - Dublin, 22 Jul - Irish low cost carrier Ryanair said that in the first quarter ended June 30 revenue fell 1% to 3.63 billion euros as customers rose 10% to 55.5 million units but average fares fell 15% to 41.83 euros reflecting in part the the absence of the first half of Easter which fell into March.

Operating costs increased 11% to 3.26 billion euros, marginally ahead of traffic growth, as fuel hedge savings offset higher staff and other costs which was in part due to Boeing delivery delays.

Net profit slumped 46% to 360 million euros.

Ryanair said it sees FY25 traffic growing 8% to 198-200 million passengers, subject to no worsening Boeing delivery delays.

It still sees unit costs to rise modestly this year as ex-fuel costs are substantially offset by fuel hedge savings, and rising net interest income, which widen Ryanair's cost advantage over its competitors.

While second quarter demand is strong, pricing remains softer than expected, and the carrier now expect second quarter fares to be materially lower than last summer. Previously it had guided for flat to modestly rising fares.

It noted that, as is normal at this time of year, it has almost zero visibility on the third and fourth quarter, although the final three months of the fiscal year will not benefit from last year's early Easter.

"It is too early to provide meaningful FY25 PAT guidance, although we hope to be able to do so at our H1 results in Nov," it said.

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(RADIOCOR) 22-07-24 08:00:59 (0066) 5 NNNN