Ryanair has signalled a strong rebound in passenger demand and airfares across Europe, despite reporting a 16% fall in annual profits. The low-cost carrier said today it expects to recoup much of the revenue lost to falling fares last year, as summer bookings pick up and demand remains strong across its network.
For the 12 months ending March 31, Ryanair posted an after-tax profit of €1.61 billion, down from €1.9 billion the previous year. The figure matched analyst expectations and came as revenue rose 4% year-on-year to €13.95 billion, driven by record passenger numbers and expanded routes across 37 countries.
Despite the dip in profit, Ryanair’s shares climbed in Dublin on Monday, buoyed by a positive outlook for the summer season and rising fares.
“Demand is robust all across the network,” said Chief Financial Officer Neil Sorahan. “We’re delighted that we’re going to be recovering most of that 7% fall in fares — just not all of it. That’s a fairly good turnaround.”
The airline, Europe’s largest by passenger numbers, flew 200 million passengers over the year — a record for any European airline. This figure came in just below its previous 205 million target, which was trimmed due to Boeing delivery delays. Ryanair now expects to carry 206 million passengers by March 2026.
Fares for the April to June quarter are projected to rise by a “mid-to-high teen percent” year-on-year, boosted in part by the early Easter holiday. Summer bookings are currently tracking about 1% ahead of last year.
Looking ahead, Ryanair anticipates only “modest” cost inflation, with new aircraft, fuel hedging, and cost controls helping offset higher air-traffic control charges and environmental taxes.
The company also addressed concerns about potential EU tariffs on Boeing aircraft. Sorahan said Ryanair would expect Boeing to honour its current fixed-price agreements, warning that the airline may delay or cancel orders if prices increase. “We’ve a fixed price with Boeing,” Sorahan said. “If tariffs come to pass and costs rise, we’d have to consider buying elsewhere.”
Shares in Ryanair closed at €22.41 on Friday, having surged from a 12-month low of €13.41 last July. CEO Michael O’Leary could receive a performance-related bonus of nearly €100 million if the share price remains above €21 for 28 consecutive trading days — a threshold it has surpassed since early May.
Separately, O’Leary criticised ongoing flight disruptions to Tel Aviv, citing security issues at Ben Gurion Airport. “We’re running out of patience,” he told analysts, suggesting Ryanair may divert aircraft to more stable European routes if disruptions continue. Flights to Tel Aviv are currently suspended until early June.
