European low-cost carrier Ryanair reported a 16% fall in annual profit as average ticket prices dropped, despite record passenger numbers and rising revenue from extras.
The airline, based in Ireland, said its profit after tax fell to €1.61 billion for the year ending 31 March 2025. This was down from €1.92 billion the year before.
Passenger numbers rose by 9%, crossing the 200 million mark for the first time. Total revenue increased by 4% year-on-year to €13.95 billion. Revenue from ancillary services — such as baggage fees, seat selection, and food — rose by 10% to €4.72 billion, helped by the growth in passenger traffic.
Ryanair’s average fare dropped by 7%, from €50 to €46. Chief Executive Michael O’Leary said the airline had to repeatedly lower prices to boost demand. He blamed the need for price cuts on high interest rates, inflation, and a sharp drop in bookings from online travel agencies ahead of the 2024 summer season.
Looking ahead, Ryanair said it expects to recover most, but not all, of last year’s fare decline.
O’Leary also warned that growth would slow this year due to ongoing delivery delays from aircraft manufacturer Boeing. Ryanair now forecasts a 3% rise in passenger numbers to 206 million in the financial year ending March 2026.
“We are seeing strong demand for summer 2025 across our network,” O’Leary said. “Our limited capacity growth this year is being focused on regions and airports that are scrapping aviation taxes and encouraging traffic growth.”
This summer, Ryanair is adding more than 160 new routes and will operate 2,600 routes in total. The airline said fares for the peak summer season are trending slightly higher compared to last year.
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