Ryanair annual profit hurt by fare reductions, higher operating costs
Ryanair Holdings PLC on Monday reported a decline in annual profit, despite growth in revenue and traffic.
An increase in operating expenses kept a lid on the Dublin-based budget airline’s profit, as it also reported that a ‘key feature’ of its annual trading was a reduction in fares, which helped drive the ‘strong traffic growth’ of 9% to 200 million passengers.
Pretax profit in the financial year to March 31 fell 16% to €1.78 billion from €2.13 billion, even as revenue improved 3.8% to €13.95 billion from €13.44 billion.
Traffic rose ‘despite repeated Boeing [Co] delivery delays’, Ryanair said.
For the new year, the airline expects traffic growth of ‘just 3%’ to 206 million passengers ‘due to constrained/delayed Boeing deliveries’.
Ryanair said: ‘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, it is far too early to provide any meaningful guidance. The final FY26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East and European air traffic control mismanagement/short staffing.’
Ryanair shares were 6.4% higher at €23.18 each on Monday morning in Frankfurt. The stock is up 21% so far in 2025.
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