Ryanair rues consumer caution as profits slip on fare discounts

Ryanair has reported weaker profits than expected for its first financial quarter, blaming a need to "stimulate" flight sales amid heightened consumer caution.

Europe's largest carrier by passenger numbers said it had engaged in more discounting than expected in the three months to the end of June, with the average fare 15% down.

Profit after tax came in 46% lower at €360m (£303m).

Market analysts had expected a figure above €530m.

The no-frills carrier reported revenue per passenger was 10% down as a whole, with so-called ancillary revenue - that is sales covering additions such as hold luggage - flat.

It warned shareholders that fares over the key summer holiday months would be significantly down as a result of the consumer backdrop.

Chief executive Michael O'Leary said: "While Q2 demand is strong, pricing remains softer than we expected, and we now expect Q2 fares to be materially lower than last summer (previously expected to be flat to modestly up)".

He said it was too early to forecast profit for the full financial year, which ends on 31 March 2025.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.