Ryanair faces profit decline amid fare reductions and delivery delays
Ryanair reported a 16% drop in annual profit, amounting to €1.61 billion ($1.8 billion) for the fiscal year ending in March, according to its latest earnings release. Despite this, the airline saw a modest 4% increase in total revenue, reaching €13.95 billion.
Passenger traffic grew significantly, rising from nearly 184 million to over 200 million, even as ticket prices fell by 7%. The airline attributed the fare reduction to constrained consumer spending, driven by sustained inflation, high interest rates, and a drop in bookings through online travel agencies. Unfavorable timing of Easter holidays also contributed.
Looking ahead, Ryanair cautiously anticipates recovering most of the previous year’s fare losses, aiming for moderate net profit growth in the 2026 fiscal year. However, the airline expects only a 3% increase in passenger numbers, largely due to delays in aircraft deliveries from Boeing.
Ongoing manufacturing setbacks at Boeing have already forced Ryanair to revise its growth targets multiple times. CEO Michael O'Leary recently suggested the airline could postpone new jet acquisitions if potential tariffs under former President Donald Trump increase costs. Proposed U.S. tariffs on vital aircraft materials like steel and aluminum, along with retaliatory trade measures, threaten to disrupt global supply chains and escalate expenses.
Ryanair also noted its continued vulnerability to macroeconomic volatility, trade disputes, and geopolitical tensions. However, it stated it is too early to provide a reliable forecast for the near future.
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