RYANAIR WARNS SHAREHOLDERS OF WEAKER SUMMER FARES – The company saw no end in sight to the need for markdowns 

Ryanair has reported weaker profits than expected for its first financial quarter, blaming a need to “stimulate” flight sales amid heightened consumer caution.

Europe’s largest carrier by passenger numbers said it had engaged in more discounting than expected in the three months to the end of June, with the average fare 15% down, and it saw no end in sight to the need for markdowns.

Profit after tax came in 46% lower at £303m.

Market analysts had expected a figure above €530m.

The no-frills carrier reported revenue per passenger was 10% down as a whole, with so-called ancillary revenue – that is sales covering additions such as hold luggage – flat.

Operating costs also dragged. Ryanair reported an 11% rise as higher wages offset lower fuel bills.

The headwinds prompted a plunge in the company’s share price – already down more than 13% in the year to date ahead of the results statement.

The stock lost a further 12% at the open.