Ryanair Sees Strong Summer Demand Despite 16% Annual Profit Drop

Ryanair, Europe’s leading low-cost airline, reported a 16% drop in annual profit to €1.6 billion ($1.79 billion) for the fiscal year ending March 31, citing weaker average fares. The figure was in line with analysts’ expectations, according to a company poll. Despite the profit decline, CEO Michael O’Leary highlighted a strong outlook for the 2025 summer season, with travel demand across the airline’s network remaining robust and fares trending modestly higher.

O’Leary stated that Ryanair aims to recover most of last year’s 7% fare decline, potentially supporting net profit growth for fiscal year 2026. However, he emphasized that it was too early to provide formal guidance.

The airline carried a record 200 million passengers over the past year, slightly below its original 205 million forecast due to Boeing delivery delays. Ryanair now expects to transport 206 million passengers in the year ending March 31, 2026.

Ryanair shares closed at €22.41 on Friday, significantly above their 12-month low of €13.41 seen last July, when the airline reported a 15% plunge in average fares in Q1. If the stock price remains above €21 for 28 consecutive trading days, O’Leary could secure a performance-based bonus nearing €100 million. The stock has traded above that level since May 2.

Ryanair continues to benefit from resilient demand and strategic capacity management, positioning itself to weather fare pressures while eyeing long-term growth. The airline remains the largest in Europe by passenger volume, and its cautious optimism for the year ahead underscores confidence in market recovery.