Ryanair Holdings plc has recently reported full-year profit after tax of €1.61bn, compared to prior-year PAT of €1.92bn, as traffic grew 9% to a record 200m passengers at 7% lower fares.
FY25 highlights include:
- Traffic grew 9% to a record 200 million passengers.
- Average fare was down 7% & ancillary revenue was up 1%.
- Cost per passenger was flat
- 181 B737-8200 MAXs in 6the 18 fleet as of 30 April
- Over 160 new routes for Summer 2025.
- 7% of shares bought back & cancelled.
- The final dividend of €0.227 per share will be payable in September (subject to AGM approval).
Ryanair Group CEO Michael O’Leary made the following comments on the Group’s results:
Revenue & Costs:
“The key feature of last years result was the 7% decline in fares which drove strong traffic growth of 9% to just over 200m. Total revenue rose 4% to €13.95bn. Scheduled revenue increased 1% to €9.23bn as traffic (despite repeated Boeing delivery delays) grew 9%. The absence of a full Easter in Q1, consumer spending pressure (driven by higher-for-longer interest rates and inflation in H1) and a big drop off in OTA bookings prior to S.24 necessitated repeated price stimulation last year. Ancillary revenues were solid rising 10% to €4.72bn. Operating costs (flat on a per passenger basis) were in line with expectations, rising 9% to €12.39bn as fuel hedge savings offset higher staff and other costs due (in part) to repeated Boeing delivery delays. Our FY26 fuel is almost 85% hedged at $76bbl and FY27 is 36% hedged at just under $66bbl which helps de-risk the Group from fuel price volatility.”
Balance Sheet & Liquidity:
“Ryanair’s balance sheet is one of the strongest in the industry with a BBB+ credit rating. At 31 Mar., gross cash was almost €4bn, boosted by delayed aircraft capex into FY26. Year end net cash was €1.3bn even after €1.6bn capex and €1.5bn of share buybacks. In Mar., the Group enhanced its financial flexibility by increasing its low-cost revolving credit facility to €1.1bn (was €0.75bn) and extending the term to Mar. 2030 (from 2028). Our owned B737 fleet (over 590 aircraft) is fully unencumbered, widening Ryanair’s cost advantage over all competitors. While Ryanair prepares to repay almost €2.1bn maturing bonds over the next 12-months from internal cash resources, our competitors remain exposed to expensive (long-term) finance, and rising aircraft lease costs.”
Fleet & Growth
“Ryanair now has 181 B737-8200 “Gamechangers” in its 618 aircraft fleet (up 5 from year-end). This will restrict our FY26 growth to just 3% (206m passengers). We are working closely with Boeing to accelerate deliveries and are increasingly confident that the remaining 29 Gamechangers in our 210 orderbook will deliver well ahead of S.26, enabling us to catch up delayed traffic growth into FY27. Boeing expects the MAX-10 to be certified in late 2025 and so we continue to plan for the timely delivery of our first 15 MAX-10s in spring 2027 (with 300 due by Mar. 2034).
We are seeing robust S.25 travel demand across our network. This year our constrained capacity growth is being allocated to those regions and airports who are abolishing aviation taxes and incentivising traffic growth. Ryanair has over 160 new S.25 routes…
We expect European short-haul capacity to remain constrained for the next few years as many of Europe’s Airbus operators are still working through Pratt & Whitney engine repairs, the big 2 OEMs are well behind on aircraft deliveries, and EU airline consolidation continues (incl. the upcoming sale of TAP). These capacity constraints, combined with our substantial cost advantage, strong balance sheet, low-cost aircraft orders and industry leading operational resilience will, we believe, facilitate Ryanair’s controlled profitable growth to 300m passengers p.a. by FY34.”
Board:
“Howard Millar has chosen not to seek re-election at the upcoming AGM and will step down from the Board in Sept. We thank him sincerely for his leadership and his enormous contribution to Ryanair’s success, firstly as our CFO from 1992 to 2014, and as a NED over the last 9 years.”
Outlook:
“We expect FY26 traffic to grow by just 3% to 206m passengers due to constrained/delayed Boeing deliveries. Following a year of flat unit-costs, we expect modest unit cost inflation in FY26 as the delivery of more Gamechangers, strong jet fuel hedging and cost control across our Group airlines helps offset increased route & ATC charges, and higher enviro. costs (following the unwind of free ETS allowances and the introduction of a SAF blend mandate from Jan. 2025). To date, S.25 demand is strong, with peak fares trending (modestly) ahead of prior year. Q1 fares will benefit from having a full Easter holiday in April, and weak prior-year comps., and Q1 fares are on track to finish a mid-high teen percent ahead of Q1 FY25. With limited visibility, we currently expect Q2 pricing to recover some of the 7% decline we experienced in PY Q2. The final H1 outcome is, however, heavily dependent on close-in bookings and peak summer yields. As is normal at this time of year, we have zero H2 visibility.
While we cautiously expect to recover most, but not all of last years 7% fare decline, which should lead to reasonable net profit growth in FY26, it is far too early to provide any meaningful guidance. The final FY26 outcome remains heavily exposed to adverse external developments, incl. the risk of tariff wars, macro-economic shocks, conflict escalation in Ukraine and the Middle East and European ATC mismanagement/ short staffing.”
