Ryanair annual net profit drops 16 percent as fares fall

LONDON

Irish no-frills carrier Ryanair Monday said net profit fell 16 percent in its financial year as it cut ticket prices to boost passenger numbers.

Profit after tax slid to 1.61 billion euros ($1.8 billion) in the 12 months to the end of March for the airline that flies mostly across Europe, Ryanair said in an earnings statement.

Revenue increased four percent to 13.95 billion euros.

A 7 percent drop in fares saw passenger numbers rise to just over 200 million, up from almost 184 million passengers the previous year.

"We cautiously expect to recover most, but not all, of last year's 7 percent fare decline, which should lead to reasonable net profit growth," in its 2026 financial year, the company said.

Ryanair attributed the lower fares to tighter consumer budgets amid persistently high interest rates and inflation, unfavorable Easter holiday dates and a sharp drop off in bookings via online travel agencies.

It warned that it expected just a 3 percent growth in passenger numbers for the 2026 financial year due to delayed Boeing deliveries.

Chief executive Michael O'Leary  said last month that Ryanair may defer deliveries of new Boeing jets should the fallout from U.S. President Donald Trump's tariffs make them more expensive.

The airline said on Monday that it remains "heavily exposed" to risks from tariff wars, macroeconomic shocks and geopolitical conflicts, but that it is "far too early to provide any meaningful guidance" on its outlook.