Ryanair announced plans to raise ticket prices by 5–6% this summer following a 16% profit decline. Despite carrying over 200 million passengers, profits fell to €1.6 billion due to a 7% drop in fares for 2024–25. The airline faced booking challenges linked to disputes with online travel agents (OTAs), though it still set a new passenger record, maintaining its status as Europe’s largest airline.
Profit Decline and Fare Adjustments
Ryanair’s profit decrease comes amid a challenging market environment. The airline reported earnings of about €8 per passenger, with rising costs matching increased traffic volumes. The planned fare hike aims to offset the 7% fall in average ticket prices from last year.
CEO Michael O’Leary described the results as “robust” given these pressures. He highlighted the company’s ability to maintain profitability despite operational and market hurdles.
Booking Issues and Passenger Growth
A dispute with online travel agents led to fewer bookings through third-party platforms. Still, Ryanair succeeded in carrying more than 200 million passengers, breaking its previous records. This achievement reinforces Ryanair’s position as the top airline in Europe by passenger numbers.
Dividends and Share Buyback Announced
Ryanair plans to distribute €400 million in dividends and launch a €750 million share buyback starting next week. O’Leary noted the airline is currently “cash rich,” benefiting from Boeing delivery delays that postponed aircraft arrivals.
Boeing Delivery Delays and Tariff Concerns
Ryanair awaits the delivery of 29 Boeing 737 Max 8 planes, expected in autumn. O’Leary expressed cautious optimism about Boeing’s progress but raised concerns that late deliveries might trigger EU tariffs.
To avoid potential trade penalties, he suggested registering the new planes in the UK rather than the EU, a move that could protect Ryanair from tariff costs.
Political Factors Affecting Trade
O’Leary commented on broader political influences, expressing hope that former US President Donald Trump may reconsider planned tariffs affecting airlines. He also praised UK Labour leader Keir Starmer’s pro-EU approach, particularly on issues like passport e-gates and youth mobility.
“Anything that reduces friction between the UK and EU helps us,” O’Leary said. “Especially when it comes to silly policies like making UK arrivals queue in non-EU lanes.”