Ryanair reports €1.61 billion profit despite fare cuts – first EU airline to carry 200M passengers in a year

Ryanair has reported a full-year profit after tax of €1.61 billion for fiscal year 2025, down from the previous year’s €1.92 billion, despite a significant 7% reduction in average fares. The Irish low-cost carrier also made history by becoming the first European airline to carry over 200 million passengers in a single year, a 9% increase in traffic, achieved despite persistent aircraft delivery delays from Boeing.

While scheduled revenues rose by just 1% to €9.23 billion, overall revenues climbed 4% to €13.95 billion, buoyed by a 10% rise in ancillary revenues to €4.72 billion. Ryanair attributed the fare reductions to weaker consumer spending in the first half of the year and a notable decline in bookings from online travel agents. However, the aggressive pricing strategy helped stimulate demand and maintain high load factors.

Operating costs rose in line with traffic (up 9% to €12.39 billion), but remained flat on a per-passenger basis, maintaining Ryanair’s key competitive advantage over other European airlines.

Ryanair’s balance sheet remains among the strongest in the industry, with nearly €4 billion in gross cash and €1.3 billion in net cash at fiscal year-end. The airline repurchased and cancelled 7% of its outstanding shares and announced a final dividend of €0.227 per share, payable in September (subject to AGM approval). The Board also approved a further €750 million share buyback, expected to run over the next 6 to 12 months.

The Ryanair fleet reached 618 aircraft, including 181 Boeing 737-8200 “Gamechangers”, which offer greater fuel efficiency and more seats. Delivery delays will limit growth to 3% in FY26 (targeting 206 million passengers), but Ryanair is optimistic that delayed aircraft will arrive in time to support growth into FY27 and beyond. The airline remains on track for its ambitious goal of flying 300 million passengers annually by FY34.

Over 160 new routes are planned for Summer 2025, with capacity being directed toward markets offering tax incentives and growth support. Ryanair also highlighted constrained capacity across the European market due to supply chain bottlenecks, OEM delays, and airline consolidation – factors that could favor its low-cost model in the years ahead.

In FY25, Ryanair added 30 more Gamechangers and retrofitted more 737NGs with winglets, aiming for 409 aircraft by 2026. These measures reduce fuel burn and noise emissions, supporting Ryanair’s SBTi-validated goal of reducing CO? emissions per passenger-kilometer by 27% by 2031. The carrier retained top ESG ratings from MSCI (A), CDP (A-), and Sustainalytics, reinforcing its leadership in sustainability among global airlines.

Ryanair has lifted restrictions on non-EU nationals acquiring ordinary shares, following a comprehensive ownership and control review. Voting restrictions still apply, but both EU and non-EU investors can now hold shares through Euronext Dublin or depository shares on Nasdaq. As a result, Ryanair will be included in the MSCI World Index as of May 2025.

Board member Howard Millar will step down in September after decades of service, having played a key role in Ryanair’s transformation and financial success.

Ryanair expects modest fare recovery in FY26, aided by stronger Q1 pricing and a full Easter season. However, the airline warns of continued uncertainty in the second half of the year due to external risks such as geopolitical tensions, inflation, and air traffic control staffing issues. While cautiously optimistic for “reasonable net profit growth,” Ryanair refrained from issuing specific full-year guidance.

CEO Michael O’Leary concluded that Ryanair remains well-positioned to deliver controlled, profitable growth, backed by its low-cost structure, fuel hedging strategy, and robust financial health.