Ryanair has announced a significant boost to its annual passenger growth outlook and full-year profit forecast, driven by strong demand and earlier-than-expected deliveries of Boeing aircraft. The budget airline now expects passenger numbers for the 2025-26 period to reach nearly 208 million, marking a notable increase from previous estimates.
Fare Increases and Financial Performance
In a move that could impact summer travel plans, Ryanair projects average fares to rise by up to 9 per cent for the full year. This adjustment comes as the airline navigates a complex financial landscape, with third-quarter pre-tax profits plummeting by 83 per cent to 24.4 million euros.
Impact of Italian Competition Fine
The sharp decline in quarterly profits is largely attributed to a 256 million euro provision for a fine imposed by Italy's competition watchdog. The fine was levied over allegations of an "abusive strategy" against third-party travel agencies. Ryanair has expressed confidence that this ruling will be overturned on appeal, but the provision has temporarily affected its financial results.
Future Growth and External Risks
Chief Executive Michael O’Leary outlined the airline's ambitious growth targets, aiming to expand to 300 million passengers annually by 2033-34. However, he also highlighted potential risks from external factors, such as regulatory challenges and market fluctuations. O’Leary noted that a recent public disagreement with Elon Musk unexpectedly boosted sales, showcasing the unpredictable nature of the travel industry.
Despite the quarterly setback, Ryanair's revised outlook reflects robust demand and strategic adjustments, positioning the airline for continued expansion in the competitive budget travel sector.
