Shares of Ryanair (RYAAY) are down 14% after the discount European airline reported that its second-quarter profit fell 46% from a year earlier.
The carrier, based in Ireland, also reported that its fares will be lower than expected for the remainder of the summer and heading into autumn.
Specifically, Ryanair announced a Q2 profit after tax of 360 million Euros ($392 million U.S.). That’s compares to 663 million Euros in profit a year ago.
Management cited weaker-than-anticipated fares as the reason for the steep profit decline.
However, the profit plunge comes despite a 10% increase in passenger traffic to 55.5 million people during Q2.
The airline previously said that it was operating its “largest ever schedule” this summer with over 200 new routes added in recent weeks.
However, executives at Ryanair now say that fares are expected to be lower in coming months. The company added that it’s too early to make forecasts for the entire year.
Prior to today (July 22), Ryanair’s stock had declined 12% on the year and was trading at $114.32 U.S. per share on the Nasdaq exchange in America.
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