Ryanair Shares Rise as CEO Sees Stabilization in Fares

Shares of Ryanair Holdings PLC (LON:0RYA) surged on Tuesday after CEO Michael O’Leary announced that the declining trend in average fares during the summer has “leveled out” during an interview with Reuters.

Ryanair shares rose by 5.4% at 6:01 AM (1001 GMT).

O’Leary noted that although Ryanair observed a softening in fares during April, May, and June, this trend has now stabilized.

The expected drop in fares during the summer peak season is now projected to be around 5%, which marks a significant improvement from earlier forecasts that indicated potential declines of over 10%.

Concerns about what O’Leary labeled as an “ugly scenario” involving double-digit fare decreases have subsided.

Moreover, he indicated that the resistance to price increases on last-minute fares has lessened, suggesting a more positive outlook for the airline.