A poor set of numbers from budget airline Ryanair landed this morning, causing the company’s share price to plummet, along with its rivals easyJet and IAG.

Europe's largest airline reported a significant decline in profits for the April to June quarter, with earnings falling by **46% to €360 million** despite a **10% increase in passenger numbers**.

The company warned that summer fares would be 'materially lower' than the previous year, leading to a sharp drop in its share price and affecting other airline stocks.

The decline in average fare costs and the impact of an IT outage on flight cancellations further contributed to the challenging financial landscape.

While Ryanair expects strong demand and increased passenger numbers for the summer, the company anticipates softer pricing and lower fares for the July to September quarter.

The airline also highlighted issues with air traffic control capacity, citing factors such as strikes and extreme weather conditions.

Chief Executive Officer (CEO) Michael O'Leary emphasized the urgent need for reform in Europe's air traffic control services to address these operational challenges.

The news has put UK-listed airlines under pressure, with easyJet and British Airways' owner IAG also falling due to the read-across from the Ryanair situation.

Investors are concerned that these airlines will suffer similar troubles to Ryanair.

Having gained **116% from the October 2022 low until March’s high at €21.

79**, the stock has now slumped dramatically.

The late June rebound fizzled out at €17.

50, creating a fresh lower high, and failing to move above the declining 50-day simple moving average (SMA).

Today’s drop took the price briefly through the October 2023 low at €13.

96, though it has recovered as the session went on.

A close below this and then below the November 2022 high/March 2023 low at €13.

62 would bolster the view.

easyJet’s shares could not remain immune from the news, and the shares fell over **8% in morning trading**, to their lowest level since November 2023.

Like Ryanair, the share price established a lower high in the first half of July, and has since dropped sharply.

Crucially for trend followers, the 50-day SMA has now crossed back below the 200-day SMA, arguing for a bearish view in the medium term.

Further declines target the September 2023 lows around **406p**, while below this looms the October 2023 low at **348p**.

In the short-term, a close back above **442p** might suggest the price has stabilized in the short-term.

IAG’s share price did fall on the news today, but the declines were more limited, given IAG derives significant revenues from business travel.

However, the share price is testing the rising trendline from the March lows, which had held firm in June.

The next targets are the late June low at **160p**, followed up by the 200-day SMA at **159p**, and then the April low at **157p**.

Buyers will want to see a recovery back above trendline support, to indicate that a low has formed in the short-term.

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