The Dublin-based airline missed Morgan Stanley’s consensus estimates for sales and net profit by 1% and 16% respectively. While volume has seen a slight uptick, the company warned that second-quarter fares are trending downward, a shift from previous expectations of flat pricing. This volatility sent shockwaves across the European aviation sector, with Air France-KLM, Wizz Air, and Lufthansa recording losses between 2.7% and 3.1%.

Despite the immediate market reaction, some analysts suggest the carrier’s long-term outlook remains resilient. RBC Capital Markets analyst Ruairi Cullinane pointed to a downward trend in fuel prices since May as a potential tailwind, arguing that the worst of the short-haul fare weakness may be passing. Deutsche Bank and Davy Research echoed this sentiment, emphasizing that Ryanair’s debt-free balance sheet and expansive order book provide a significant cost advantage over competitors. Davy Research trimmed its fiscal 2027 profit forecast to 1.88 billion euros, down from 1.92 billion, yet maintained that the airline is structurally prepared to navigate the current climate.