Ryanair shares down 6% after profit dip
Ryanair's stock price dropped by 5.6% after the company announced a 34% decline in its first-quarter profits, down to €538 million ($615.3 million) from €820 million in the same period last year. The company attributed this decline to consumer hesitancy caused by the Middle East crisis and postponed bookings, along with a 6% decrease in average ticket prices and an 11% rise in operating costs. It also revealed that 20% of its aircraft fuel is not covered by hedging contracts, making it vulnerable to price increases, although its "conservative" hedging policy helps it resist oil price volatility. The CEO predicted that unprofitable airlines will face a "difficult winter" as fuel costs continue to rise and bookings are affected by geopolitical tensions, with expectations that first-half results will depend on bookings in August and September.
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