Ryanair raises fares after earnings hit by decrease ticket costs

Europe’s largest airline has seen annual earnings drop by 16% after chopping air fares – however revealed a worth hike because it seeks to return to progress.

Ryanair reported earnings after tax fell to €1.61bn (£1.35bn) for the 12 months to 31 March, down from €1.92bn (£1.61bn) in 2024, nonetheless the second highest on document.

On common, aircraft tickets have been 7% cheaper throughout this era than the 12 months earlier than, it mentioned.

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There had been a 21% rise in fares within the 12 months as much as March 2024, which bosses had signalled was as a consequence of finish.

Increased-for-longer rates of interest and inflation within the first half of the 12 months meant ticket costs needed to come down, the finances service mentioned.

However fares are already again on the rise, Ryanair’s chief govt Michael O’Leary mentioned.

The airline “cautiously” expects to get better “most, however not all” of the fare decline, which he mentioned will enhance earnings.

Demand for summer time flights is “sturdy”, Mr O’Leary mentioned, with peak fares “modestly” forward of final 12 months.

In current months, that rebound has already been below approach. Fares since April are on observe to be “a mid-high teen per cent forward” by the tip of subsequent month, in contrast with the identical interval final 12 months.

That development is predicted to proceed to July, August and September, Mr O’Leary mentioned.

“Whereas we cautiously anticipate to get better most, however not all of final 12 months’s 7% fare decline, which ought to result in affordable web revenue progress in 2025-26, it’s far too early to offer any significant steerage,” he mentioned.

“The ultimate 2025-26 final result stays closely uncovered to antagonistic exterior developments, together with the danger of tariff wars, macro-economic shocks, battle escalation in Ukraine and the Center East and European air site visitors management mismanagement/brief 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 aircraft mid-flight in January final 12 months. Strike motion by employees 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 12 months.

It hopes to achieve 300 million passengers by 2034 and on Monday mentioned it nonetheless expects to obtain 300 new Boeing planes by 2033.