Europe’s largest airline has seen annual earnings drop by 16% after slicing air fares – however revealed a worth hike because it seeks to return to development.
Ryanair reported income after tax fell to €1.61bn (£1.35bn) for the yr to 31 March, down from €1.92bn (£1.61bn) in 2024, nonetheless the second highest on document.
On common, airplane tickets had been 7% cheaper throughout this era than the 12 months earlier than, it stated.
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There had been a 21% rise in fares within the yr as much as March 2024, which bosses had signalled was as a consequence of finish.
Larger-for-longer rates of interest and inflation within the first half of the yr meant ticket costs needed to come down, the funds service stated.
However fares are already again on the rise, Ryanair’s chief govt Michael O’Leary stated.
The airline “cautiously” expects to get better “most, but not all” of the fare decline, which he stated will increase income.
Demand for summer season flights is “strong”, Mr O’Leary stated, with peak fares “modestly” forward of final yr.
In latest months, that rebound has already been below approach. Fares since April are on monitor to be “a mid-high teen per cent ahead” by the tip of subsequent month, in contrast with the identical interval final yr.
That development is predicted to proceed to July, August and September, Mr O’Leary stated.
“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 2025-26, it is far too early to provide any meaningful guidance,” he stated.
“The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macro-economic shocks, conflict escalation in Ukraine and the Middle East and European air traffic control mismanagement/short staffing.”
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Passenger numbers grew to a document 200 million on the again of cheaper fares, hitting a goal that had been diminished as a consequence of delays in delivering new Boeing planes.
The US producer has struggled with elevated regulatory oversight after a door panel blew off an Alaska Airways airplane mid-flight in January final yr. Strike motion by workers had added to the delays.
The forecast for passenger numbers has been diminished once more. Ryanair now goals to move 206 million passengers on this monetary yr.
It hopes to succeed in 300 million passengers by 2034 and on Monday stated it nonetheless expects to obtain 300 new Boeing planes by 2033.
