Ryanair Holdings PLC (RYAAY) saw its shares plummet 5.43% during intraday trading on Monday, following the release of its first-quarter financial results that disappointed the market.
The budget airline reported quarterly earnings of $1.19 per share, missing the analyst consensus estimate of $1.35. Revenue of $5.097 billion also fell short of expectations. The company cited a 6% decrease in average fares, driven by consumer hesitancy and later bookings, alongside rising fuel costs exacerbated by the ongoing conflict in the Middle East, which together pressured profitability.
Analysts noted the results were a negative surprise, with Morgan Stanley highlighting that Ryanair missed its estimates for both sales and net profit. Management indicated that pricing for the current quarter is trending modestly lower than the previous year and refrained from providing full-year profit guidance due to limited visibility, citing the highly sensitive outlook to external developments, particularly in the Middle East.