Ryanair Holdings Plc - ADR

**Profit and Revenue Performance**: Ryanair reported H1 after-tax profits of EUR 1.8 billion, down 18% from EUR 2.18 billion in H1 of the previous year. However, total revenues rose 10% to EUR 2.74 billion, outpacing the 9% increase in traffic to 115 million passengers, suggesting strong demand despite falling average fares.

**Traffic and Capacity Adjustments**: Due to Boeing delivery delays, Ryanair adjusted its FY '25 passenger forecast down from 205 million to approximately 200 million, with FY '26 estimates reduced from 215 million to about 210 million. The airline plans to implement more capacity churn, reallocating aircraft from markets with increased taxes (e.g., Germany, the UK) to locations with more favorable conditions (e.g., Italy, Hungary, and Sweden).

**Pricing Environment**: Average fares fell by 10% in H1, with a more significant decline of 15% in Q1 and 7% in Q2. However, declines are moderating, with a forecast for Q3 fare reductions to be less than single digits. The softer pricing trend is attributed to consumer spending pressure and the impact of online travel agencies (OTAs).