Ryanair (Nasdaq:RYAAY) shares continued to fall on Monday after the company warned that first-quarter profits fell 46 percent and second-quarter freight rates would be “significantly” lower than last summer.
RYAAY 16% decrease The lowest level in nine months And it sent shares in the airline’s rivals plummeting in sympathy.OTCQX:EJTTF) and Wizz Air (OTCPK:WZZAF), both low-cost airlines that operate in similar markets to Ryanair (Yeah.),Experienced 7.5% and 9% declines Their respective stock prices rose overseas.
“We expect capacity on European short-haul routes to remain constrained for the next few years. [Airbus] The A320 operator: [Pratt & Whitney] “Engine repairs, OEMs struggling with delivery delays and airline consolidation continues,” Ryanair said in a statement early on Monday.
Europe’s oldest airlines were largely unaffected by Ryanair’s (RYAAY) dramatic sell-off, with Lufthansa (OTCQX:DLAKF) and Air France-KLM (OTCPK:AFRAF) barely affected. 1% lower, International Consolidated Airlines (OTCPK:ICAGY), parent of British Airways, Iberia, Vueling, Aer Lingus and Rebel, fell 3.5%.
Falling prices, Boeing delays and rising operating costs weighed on Ryanair’s (RYAAY) profits, causing the airline’s profits to fall to €360 million from €663 million a year earlier as revenue fell slightly compared to the same period last year despite a 10% increase in passenger numbers.
Ryanair Chief Executive Michael O’Leary warned on a quarterly earnings call with analysts of “some consumer resistance” and “recessionary sentiment”, both of which could force the airline to cut fares more aggressively than rivals.
