Ryanair's annual net profit has fallen by 16% compared to last year, amounting to €1.6 billion, the Irish low-cost airline stated on Monday for the fiscal year ending in March.
Ryanair had to reduce ticket prices to fill its planes, resulting in a 7% decrease in fares. Despite the loss in net profit, this strategy led to a record high of just over 200 million passengers, said CEO Michael O'Leary in a press release.
The airline cited its customers' tighter budgets against a backdrop of persistently high interest rates and inflation, the unfavourable dates of the Easter holidays in the first quarter and "a sharp fall in bookings" via online travel agencies before the summer.
Ryanair had revised its passenger growth target downwards several times during the year, citing Boeing delivery delays. The company warns that this will continue to weigh on the current financial year. The airline is a major customer of the American aircraft manufacturer and had already suffered from delivery delays in the previous financial year.
Delayed Boeing deliveries and tariffs
"We expect traffic in FY26 to grow by just 3% to 206 million passengers due to limited or delayed deliveries from Boeing," O'Leary said.
US fare levels have created uncertainty within the aviation sector, with customer budgets under pressure, as highlighted by the airline. Last month, O'Leary also threatened to delay deliveries of aircraft ordered from Boeing – or even to turn to Chinese supplier COMAC – if they became more expensive as a result of Donald Trump's campaign of tariffs.
Nevertheless, Ryanair reports a "robust demand" for summer bookings. This year's profit will depend on potential impacts from the fare war, geopolitical conflicts, and macroeconomic shocks, as stated by the airline.
Additionally, the company announced plans to buy back shares worth €750 million over the next six to 12 months.
