Ryanair to raise prices as it seeks return to profit growth
Ryanair has seen annual earnings tumble 16% after slashing air fares to help boost demand, but revealed prices are to rise as it seeks to return to growth.
The budget carrier reported pre-tax profits of 1.78 billion euros (£1.5 billion) for the year to March 31, down from 2.13 billion euros (£1.79 billion) after average fares fell 7%.
Profits after tax were also 16% lower at 1.61 billion euros (£1.35 billion).
Lower air fares helped passenger numbers grow 9% to 200.2 million in the year, but the group said it expects growth of just 3% in 2025-26 due to delayed deliveries of Boeing aircraft.
In a blow to passengers, the group said fares will rise sharply as it looks for a turnaround over the year ahead, with prices on track to increase by a 'mid-high teen percent' year on year in its first quarter.
The group added that over the key summer quarter it is also hoping to claw back some of the 7% drop in fares seen a year earlier.
Chief executive Michael O'Leary said: 'While we cautiously expect to recover most but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance.
'The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East, and European air traffic control mismanagement/short-staffing.'
The group said it resorted to fare cuts last year to boost passenger numbers in the face of pressure on consumer spending, as well as the timing of Easter last year and and a steep drop-off in bookings through online travel agencies.
Meanwhile, it has slashed its passenger forecasts a number of times due to Boeing aircraft issues.
Airlines have been knocked by problems at Boeing, which was hit hard by a lengthy strike at the end of last year, while the aerospace giant has had to slow down production of its 737 Max aircraft after a door panel blowout on a commercial flight in January last year.
Tariff woes are adding to the headache, with Ryanair warning recently that aircraft deliveries may be deferred if tariffs imposed by US President Donald Trump make them more expensive.
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