Ryanair, Europe’s largest low cost airline, has reported a 16% decline in annual profits, attributing the drop to a 7% decrease in ticket prices despite a 9% increase in passenger traffic, reaching a record 200 million passengers. The airline’s revenue grew 4% to €13.95 billion, but the company remains cautious about providing financial guidance for the upcoming year due to geopolitical risks, macroeconomic uncertainties, and potential tariff wars.
The airline has adjusted its passenger target to 206 million for the next fiscal year, citing delays in Boeing aircraft deliveries. Despite these challenges, Ryanair anticipates strong summer demand, with airfares expected to rise by 4-5% in the second quarter. The airline’s stock has responded positively, climbing 2.59% following the earnings report and marking a 20.5% increase year-to-date. In addition to its operational performance, Ryanair has announced a €750 million share buyback program set to commence on May 25, alongside a dividend payout of €0.227 per share. The airline is also set to be included in the MSCI World Index by the end of May, reflecting its growing influence in global markets.
CEO Michael O’Leary stated that while Ryanair expects to recover most, but not all, of last year’s fare decline, it is too early to provide meaningful guidance. The airline remains heavily exposed to external risks, including tariff disputes, geopolitical conflicts, and macroeconomic shocks. However, strong summer demand and cost-saving measures are expected to support profitability in the coming months.