Ryanair reported a 16% decline in post-tax profit for the financial year ending March 31, 2025, despite strong travel demand across Europe. The airline’s profit fell from €1.92 billion to €1.61 billion, even as it carried over 200 million passengers—a 9% increase year-on-year.
Key factors behind the earnings drop include:
Rising operational costs, especially higher fuel prices and increased labor expenses.
A 7% decline in average ticket prices, falling from €50 to €46, driven by weaker demand from online travel agencies, higher interest rates, and inflation dampening consumer spending.
Several rounds of fare reductions aimed at boosting bookings, which increased passenger numbers but hurt profit margins.
Ryanair expects some fare recovery in 2025 but anticipates only regaining most—not all—of the previous year’s losses, as it navigates a challenging economic environment.
