Ryanair sees summer fares lower than expected, Reuters says

Ryanair Holdings Plc expects summer ticket prices to be lower than previously estimated as the airline industry suffers from grounded planes and a supply chain backlog.

Fares during the peak travel season will likely be flat to up 5% at most, Reuters reported, citing Ryanair Chief Executive Officer Michael O’Leary. He previously said the airline was doing its budgets based on a pricing increase of between 5% and 10%, Reuters said.

Ryanair fell as much as 6.4%, with rivals EasyJet Plc and Wizz Air Holdings Plc falling about 5.5% and 2%, respectively. 

O’Leary told reporters the lower-than-expected pricing was “surprising” as some Airbus SE fleet remain grounded for maintenance of Pratt & Whitney engine issues. The Irish carrier is facing aircraft delivery delays with Boeing Co. jets this year, forcing it to reduce its annual passenger forecast and cut flight frequencies.