Ryanair sees better momentum in bookings, lifts struggling airline shares

Ryanair has seen better momentum in bookings since last month and less need to cut prices, CEO Michael O'Leary told Reuters on Tuesday, adding that annual profit was likely to be slightly down on last year but remained "very strong". His comments provided reassurance after a tough few months for the industry. Shares in Ryanair spiked higher, also giving a boost to rival European airline groups including easyJet, IAG, the owner of British Airways, Air France-KLM and Lufthansa. "We think we are past the worst of the 'fare scare' which hit European airlines this summer, given the upward trend in European macro indicators," said RBC analyst Ruairi Cullinane. Other smaller European airlines have reported either slower price growth or flat ticket prices as the post-pandemic travel boom settled into something more akin to regular demand. Ryanair shares slumped in July after it reported ticket prices had seen annual falls of 15% in the three months to the end of June, heightening fears of a weak summer for Europe's airlines. Prices will likely be down 5-9% in the three months to the end of September from the same period last year, O'Leary said, with signs of improvement in recent weeks. "We were having to discount heavily to hit our load factor objectives. I think, from about August onwards... there's a better momentum of bookings, we're having to discount less," O'Leary said, adding that smaller discounts are expected until November.<br/>