In the first financial quarter of 2024/2025, Ryanair faced a dramatic slide in airline ticket prices that shocked the entire industry. The Irish low-cost airline reported a 15 percent drop in ticket prices, resulting in a significant decline in company profits. This decline was caused by a combination of reduced passenger volumes and an intense price war in the aviation market. Following the announcement of the sobering figures, Ryanair shares experienced a significant drop in value, underscoring uncertainty about future market developments. The causes of the price pressure The causes of the price slide are varied. On the one hand, ongoing competition among airlines has led to aggressive price pressure. Many airlines lowered their ticket prices to gain market share and attract passengers, especially after the pandemic, when demand for travel fell sharply and recovered only slowly. On the other hand, Ryanair struggled with an oversupply of seats and a comparatively low load factor of flights. This combination led to enormous pressure on ticket prices as the airline tried to fill empty seats and increase revenue. Ryanair's response and adjustment strategies Despite the difficulties Ryanair experienced in the first quarter, there are signs of stabilization. Michael O'Leary, the CEO of Ryanair, expressed optimism that the worst price declines have stopped for now. According to O'Leary, ticket prices stabilized in July and the airline only expects a price reduction of about five percent year-on-year for the current quarter. This statement brought relief to the stock market and led to a six percent rise in Ryanair shares.