Ryanair annual profits fall 16% to €1.6bn despite flying record 200m passengers
Ryanair chief executive Michael O'Leary reported a 16% fall in its annual profit on Monday due to weaker average fare. Picture: Press Association
Ryanair reported a 16% fall in its annual profit on Monday due to weaker average fares, but Europe's largest low-cost carrier said that demand for the coming summer was strong and that fares were modestly higher.
After-tax profit for Ryanair’s financial year, which ends on March 31, was €1.6bn, as softer consumer demand and a dispute with online travel agents drove fares down by 7%. Chief financial officer Niall Sorohan said the airline expected to recover "most" of the 7% drop, "Just not all of it. So, I think that that's a fairly good turnaround."
"We are seeing robust summer 2025 travel demand across our network," chief executive Michael O'Leary said. Fares for the three months ending in June are expected to rise by a "mid-to-high teen percent" year-on-year, largely driven by the timing of Easter.
"While we cautiously expect to recover most, but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in FY26 (full year 2026), it is far too early to provide any meaningful guidance," Mr O'Leary added.
Ryanair flew a record 200 million passengers over the 12 months after trimming an earlier 205m target due to delivery delays from Boeing. It expects to fly 206m passengers in the year to March 31, 2026. "We're in good shape on the deliveries," Mr Sorahan said.
Ryanair said it expects Boeing to honour the agreed prices on current aircraft orders even if the EU imposes reciprocal tariffs. "We've a fixed price with Boeing and our suppliers, and we've been very much of the view if tariffs come to pass ... we would expect our suppliers to honour the fixed prices," Mr Sorahan said. "If we were to see an increase in our prices, then we'd have to reserve our right to delay, cancel, or buy elsewhere." The airline is one of Boeing's largest customers.
Shares in the airline, Europe's largest by passenger numbers, closed on Friday at €22.41, up from a 12-month low of €13.41 hit in July last year after the airline reported a 15% fall in average fares in the first quarter. Mr O'Leary could be in line for a bonus of close to €100m if the share price remains above €21 for 28 days. It has been over that level since May 2.
Reuters
