Ryanair to raise flight prices after profits slump
The budget airline has already axed 12 routes in Spain for 2025
Low-cost airline Ryanair has announced that it will raise its flight prices after 12 months of lower fares that saw its profits fall 16% in its last fiscal year, which ended March 31. This comes despite a 4% increase in revenue and a 9% increase in passenger numbers, reaching a record 200.2 million travellers.
According to the Dublin-based carrier, the drop in profit was primarily due to a 7% fall in average fares for the 2024-25 season. Ryanair attributed this decline to “a sharp drop in bookings from online travel agencies, which forced repeated price stimulation last year.”
Rising advertising costs and the timing of Easter, which this year fell in April and therefore outside the current fiscal period, also contributed to the weaker results.
Adding to its financial woes, Ryanair is also locked in a long-standing dispute with Spanish airport operator Aena over increased charges, leading to the cancellation of 12 routes in Spain. The airline has permanently withdrawn from the airports in Valladolid and Jerez and significantly cut services at five others: Vigo, Santiago de Compostela, Asturias, Zaragoza and Santander.
Looking ahead, Ryanair expects slower growth for the coming year. The airline forecasts only a 3% increase in passenger numbers for fiscal year 2026, reaching 206 million.
Although its long-term goal remains 300 million passengers annually by fiscal year 2034, the delay in Boeing aircraft deliveries is expected to hinder immediate expansion. However, Ryanair says it is working closely with the manufacturer and remains confident that the remaining 29 B737-8200 ‘Gamechanger’ aircraft from its 210-plane order will be delivered well before 2026, allowing traffic growth to recover in 2027.
Despite the setbacks, Ryanair remains optimistic about short-term demand.
“To date, fiscal year 2025 demand is solid, with peak fares trending modestly ahead of prior year levels,” a spokesperson said, adding that the airline expects “second-quarter prices to recover some of the 7% decline we experienced in the second quarter of the fiscal year.”
In fact, as early as last May, Group CEO Michael O'Leary predicted fare increases of between 5% and 6% during the 2025 peak season.
The company’s latest update did not touch on its recent legal troubles, although Ryanair has been involved in several court cases over allegedly unfair charges for hand luggage. These issues may be adding further strain to the airline’s financial performance.
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Image: Archive
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