Ryanair Set to Hike Air Fares After Profits Take a Hit
So here’s what’s going on with Ryanair — and it’s a story that matters to pretty much anyone flying in or around Europe. After a year of cheaper ticket prices helped fill more seats but ultimately dented their bottom line, Ryanair has announced that fares will be going up again this summer. That’s right, the era of ultra-low prices—at least for now—seems to be tightening.
In 2024–25, Ryanair carried just over 200 million passengers, which is a record-breaking number. But while more people were flying, ticket prices were actually 7% lower on average. This dip in pricing came after a conflict with some online travel agencies limited bookings, forcing Ryanair to drop fares just to keep planes full. As a result, their annual profits took a 16% hit, landing at €1.6 billion.
Now, Michael O’Leary—Ryanair’s ever-blunt CEO—isn’t exactly panicking. In fact, he’s calling the year “remarkably robust,” especially considering the challenges they faced. He pointed out that the airline still made around €8 profit per passenger, and operational costs rose in line with passenger growth. According to him, the cost advantage Ryanair holds over competitors is actually getting bigger.
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But the real takeaway? Fares are climbing back up. The airline expects a 5–6% increase during the 2025 peak season. They’ve already seen a 15% spike around Easter, so if you're planning to book summer travel, it might be wise to do it sooner rather than later.
There’s also a bit of drama on the aircraft supply side. Boeing delays in delivering the 737 Max 8s continue to be an issue. Ryanair still has 29 aircraft due, and if those come later than expected, there's concern they could get hit with tariffs—especially if they’re delivered under European rather than UK registration. O’Leary mentioned that taking deliveries in the UK might be a way to avoid those extra costs, depending on how trade relations evolve—particularly with Donald Trump potentially back in the U.S. political spotlight.
In terms of shareholder perks, Ryanair is distributing about €400 million in dividends and launching a €750 million share buy-back. So while profits dipped, investors are still seeing solid returns—thanks in part to lower jet fuel prices and that surplus cash sitting around due to those delayed plane deliveries.
O’Leary also hinted at optimism over the UK’s improving relationship with Europe. He’s all for anything that reduces friction, especially with things like passport e-gates and youth mobility schemes being discussed.
In short, while last year wasn’t smooth sailing, Ryanair is clearly banking on a rebound. More expensive tickets might not be what travelers want to hear, but from the airline’s point of view, it’s a necessary course correction after a rocky but resilient year.
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