Ryanair reported lower-than-expected profits in the second quarter of its fiscal year on Monday, as the airline struggles with weaker fares, higher oil prices and several strikes.
It reported a net profit of 841.5 million euros ($968.61 million) for the second quarter, which was slightly below analyst expectations of 855 million euros, according to data firm Refinitiv. For the first half of the year, Ryanair reported a 7 percent drop in net profit to 1.2 billion euros.
Here are the key highlights:
- Net profit: 841.5 million euros, versus 309.2 million euros in the first quarter.
- Total operating expenses: 1.825 billion euros, versus 1.708 billion in the first quarter.
Speaking to CNBC Monday, Ryanair's CEO painted a gloomy picture for the rest of the year.
"The winter looks grim. We have a combination of rising oil prices; although Ryanair is very well hedged while competitors aren't; fares are falling, there's excess capacity in Europe ... We see a winter characterized by declining air fares," Michael O'Leary, CEO or Ryanair told CNBC's "Squawk Box Europe" Monday.
He predicted that amid such an environment, many airlines would struggle to operate. "You will see more failures this winter as we enter what is probably a four-five year downturn in the industry."