Ryanair (LON:RYA) reported a 7% fall in half-year profits, blaming strike action and higher fuel costs.
The low-cost airline posted a fall in profits to €1.2 billion (£1.06 billion) for the six months to 30 September.
Ryanair attributed the decline to industrial action across the period, as well as rising fuel prices.
Back in October, Ryanair pilots across Germany, Spain, Italy, Portugal and Belgium announced plans to coordinate strike action for 24 hours.
The action led to the airline cancelling as many as 250 flights, affecting some 40,000 customers.
As a result, Ryanair said it had seen a spike in cancellations across the period, with customers increasingly deterred amid concerns of flight disruptions.
Traffic increased 6%, with planes at 96% capacity. However, average fares slipped 3% to €46.
Whilst ancillary revenues, such as luggage and seat reservation fees, were up 27%, this was offset by compensation costs and higher fuel prices.
Chief Executive Michael O’Leary said:
“As recently guided, H1 average fares fell by three per cent. While ancillary revenues performed strongly, up 27 per cent, these were offset by higher fuel, staff and EU261 [flight compensation] costs. Our traffic, which was repeatedly impacted by the worst summer of ATC disruptions on record, grew six per cent at an unchanged 96 per cent load factor.”
It has proved a turbulent year for many airlines, as volatile oil prices and currency movements have impacted profits.
Last week, Flybe shares (LON:FLYB) plunged over 30% after the budget airline warned on profits for the year.
Shares in Ryanair are currently trading +4.54% as of 10.40AM (GMT).
