Richard Parks Europe’s top budget airline, Ryanair, will increase ticket prices by 5–6% during summer 2025. The move follows a year marked by falling fares, weaker profits, and delivery delays from aircraft maker Boeing. Despite challenges, the airline flew over 200 million passengers—a new record.
The fare hike comes after a sharp 7% drop in average ticket prices last year, which contributed to a 16% fall in annual profits, now at €1.6 billion. Ryanair had already raised Easter fares by 15%, and the company now expects demand to remain strong through the summer travel season.
Lower Prices Cut Profits Despite Record Passenger Numbers
In its latest financial report, Ryanair confirmed that its average profit per passenger was €8. While this figure may seem modest, CEO Michael O’Leary described the results as “robust” given the pricing drop and wider market challenges.
“These are strong results given the context,” O’Leary said in a press briefing. “We’ve kept our costs in line with traffic growth.”
Ryanair’s total traffic for the fiscal year 2024–25 reached over 200 million passengers, a record milestone for the airline. However, that success was dampened by a dispute with online travel agents, which led to a sharp drop in third-party bookings.
Shareholders to Benefit From Strong Cash Position
Despite the drop in profits, Ryanair’s surplus cash flow remains strong, partly due to Boeing’s delayed aircraft deliveries. As a result, the company announced a €400 million dividend payout and will start a €750 million share buyback program next week.
The move is expected to boost investor confidence and reflects the airline’s solid financial footing, even as it faces fleet shortages.
Boeing Delivery Delays Prompt Strategic Adjustments
Ryanair is still waiting for 29 Boeing 737 Max 8 aircraft, but delivery delays could push arrivals into autumn 2025. The airline had planned to use these planes during the peak summer season.
O’Leary stated that Ryanair may register incoming jets in the United Kingdom to avoid potential EU import tariffs, depending on future trade decisions.
“Tariffs are Boeing’s problem, not ours,” he said. “But we’ll work together to find solutions.”
The airline has made it clear that while Boeing is responsible for resolving tariff-related issues, Ryanair is willing to adapt.
Political Developments May Ease Travel Rules
Looking ahead, Ryanair’s CEO expressed hope that political changes in the U.S. and UK could benefit the airline’s operations. He said that a second Donald Trump presidency might reduce tariff threats on transatlantic aircraft deals.
He also praised UK Labour leader Keir Starmer for seeking closer ties with the European Union, especially in areas like e-gate access and youth mobility. These changes could reduce border friction for travelers between the UK and EU.
“Anything that reduces UK–EU travel friction is good for us,” said O’Leary. “Especially pointless rules like treating UK passengers as non-EU arrivals.”
Ryanair Looks Ahead to Busy Summer Season
With summer demand rising and costs under control, Ryanair remains optimistic. Fare increases are expected to balance recent price drops and strengthen margins.
The company’s ability to attract passengers despite external headwinds shows the resilience of its low-cost model.
As travel rebounds and political developments evolve, Ryanair is positioning itself for continued growth in 2025, while keeping a close eye on aircraft deliveries, tariff discussions, and regulatory reforms.