Ryanair’s yearly earnings have dropped by 16 per cent after cutting ticket prices to drive demand, but the airline has announced that fares will increase as it aims to return to a growth trajectory, reports Breaking News.
The low-cost airline reported pre-tax profits of €1.78 billion for the 12 months ending March 31st, a decline from €2.13 billion, following a seven per cent drop in average ticket prices.
Net profits also fell by 16 per cent, coming in at €1.61 billion, reports Breaking News.
While cheaper fares contributed to a nine per cent rise in passenger numbers, reaching 200.2 million over the year, the airline forecasts only three per cent growth for 2025-26 due to delays in receiving aircraft from Boeing.
In disappointing news for travelers, Ryanair confirmed that prices are set to rise significantly in the year ahead, with fares expected to increase by a “mid-high teen per cent” in the first quarter compared to the same period last year, reports Breaking News.
The airline also noted it plans to recover some of the seven per cent price drop that occurred during last year’s key summer period.
Chief executive Michael O’Leary 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 2025-26, it is far too early to provide any meaningful guidance, reports Breaking News.
“The final 2025-26 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,” reports Breaking News.
The airline said it was forced to lower prices last year in response to reduced consumer spending, the timing of Easter, and a sharp decline in bookings made through online travel agencies.
Additionally, Ryanair has had to revise its passenger projections multiple times due to ongoing issues with Boeing’s aircraft deliveries, reports Breaking News.
Airlines across the sector have been impacted by difficulties at Boeing, which faced a major strike late last year and has since had to slow down output of its 737 Max jets following a door panel blowout on a commercial flight in January.
Concerns over tariffs have added to the challenges, with Ryanair recently warning that aircraft handovers could be delayed if tariffs introduced by US President Donald Trump lead to higher costs, reports Breaking News.
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