Ryanair reported a 33% decline in quarterly profit for the three months ended June 30, driven by a combination of higher fuel expenses and softer average fares.
The Irish low-cost carrier, one of Europe's largest airlines, cited consumer nervousness as a key factor behind the pricing weakness, noting that summer fares are tracking below last year's levels.
The profit slump highlights the ongoing margin pressure facing the aviation sector.
While passenger volumes remain robust, the ability to pass through rising costs to consumers appears to be eroding.
Ryanair's management indicated that the current pricing environment is challenging, with demand softening slightly amid broader economic uncertainty.
This development aligns with a broader trend of earnings pressure across the airline industry.