Ryanair set to cut fares to 'stimulate' demand as profits plunge

The company’s average fare in the three months to the end of June was €41.93 — down 15% year-on-year

Ryanair Group chief executive Michael O'Leary said the 'minimum floor on price falls' would be above 5%. 

Ryanair Group’s chief executive Michael O’Leary said the airline would cut airfares by at least 5% in an attempt to spur demand following a weak start to its latest financial year which saw profits cut nearly in half.

On Monday, the budget airline released its results for the first three months of its financial year, which showed profit fell by 46% to €360m, with revenue falling 1% to €3.63bn. During the same period, its operating costs increased 11% to €3.26bn.