Ryanair says tariff war top threat to growth; plans buyback
[LONDON] Ryanair Holdings said profit growth this year will depend on working through the risk of tariff wars, geopolitical conflicts and macroeconomic blows.
The airline said it was too early to provide guidance for this year and has no visibility into the second half of fiscal 2026.
Profit after tax for the year ended Mar 31 was 1.6 billion euros (S$2.3 billion), falling at the high end of the company's predicted range of 1.55 billion euros to 1.61 billion euros, the Irish budget carrier said on Monday (May 19). A 7 per cent drop in ticket prices led to passenger traffic rising to just over 200 million, up from 183.7 million in 2024.
Tariffs imposed by the US have sewn uncertainty in the aviation industry, disrupting the free flow of aircraft required for growth and weakening a US economy that feeds travel to Europe. Still, Ryanair has signalled bookings are robust for the high season and ticket pricing is strong.
The carrier also said it plans to buy back 750 million euros of shares over the next six to 12 months.
Like other airlines, Ryanair is awaiting the outcome of trade talks between the US and the European Union, after EU officials threatened to target Boeing jets with retaliatory tariffs in response to US levies imposed in April.
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Ryanair, which operates an all-Boeing fleet and is the US manufacturer's biggest customer in Europe, has said it would consider scrapping its US$33 billion plane order and switching to an alternate manufacturer if the added fees took effect.
For their part, US carriers including Delta Air Lines have refused to pay surcharges on aircraft from Boeing's European rival Airbus. A new commercial jetliner can cost tens of millions after industry discounts, and range into several hundred of millions.
Manufacturing issues at Boeing had already slowed deliveries for Ryanair. Europe's dominant low-cost carrier has twice lowered its forecast for passenger growth for the current fiscal year. However, the company said in January that capacity constraints would offset the financial impact by driving up ticket prices during the all-important summer season.
Ryanair originally targeted traffic hitting 215 million passengers in fiscal 2026, but slashed the goal in November and then again in January because of delays with Boeing jets. The forecast currently stands at 206 million, up from 200.2 million passengers in fiscal 2025.
Bookings this summer are looking strong as Ryanair expands its network into holiday destinations including Italy, Malta and Turkey. Summer is the most profitable time of year for carriers, when many passengers book flights for vacations abroad.
Ryanair shares have gained around 18 per cent this year, compared with a 14 per cent increase at Wizz Air Holdings and a 2 per cent drop at EasyJet.
Ryanair is the first major low-cost carrier in Europe to report earnings for the quarter. EasyJet will post its results on Thursday, followed by Wizz on Jun 5. BLOOMBERG
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