Ryanair Experiences Passenger Growth Despite Profit Decline And Boeing Delays

Ryanair, Europe’s largest budget airline, has recorded unprecedented passenger growth, carrying over 200 million customers in the financial year ending March 2025. This represents a 9 per cent increase from the 183 million passengers it reported the previous year. The impressive milestone was achieved despite a challenging market environment, including delayed deliveries of its highly anticipated Boeing 737 Max aircraft.

Michael O’Leary, Ryanair’s long-serving chief executive, stated that higher passenger volumes resulted from aggressive pricing strategies. The airline cut fares by an average of 7 per cent over the past year to maintain passenger demand and keep load factors near its target of 94 per cent. These discounts, however, significantly impacted Ryanair’s profitability, with post-tax profits dropping by 16 per cent to €1.61 billion, down from €1.92 billion the prior year.

Despite the profit decline, Ryanair’s shares have performed strongly, hitting record highs in recent days. Shares rose 4.7 per cent following the release of the results, closing at €23.48. O’Leary could receive a bonus nearing €100 million if the share price stays above €21 for a sustained 28-day period, a threshold surpassed since early May.

Boeing’s delays in delivering the 737 Max aircraft have hindered Ryanair’s ability to expand its passenger capacity as planned. The airline expects to receive 181 of the 210 ordered planes by the end of the year, causing it to lower its growth forecast for passenger numbers to 206 million. Nevertheless, O’Leary described the 737 Max model as a “gamechanger” because of its ability to carry more passengers while consuming less fuel, aligning well with environmental and operational goals.

Cost pressures remain a concern for Ryanair. Rising wage inflation, higher air traffic control fees, and increasing environmental expenses, such as investment in sustainable aviation fuel, are likely to push operating costs further upwards. These challenges come against a backdrop of improved consumer confidence driven by easing inflation and interest rates, which helped buoy travel demand, particularly within Europe.

The airline has also benefited from strong summer 2025 bookings, with peak fares showing modest growth compared to last year. Revenue for Ryanair is poised to rebound after last year’s challenges, and first-quarter fares are tracking “mid-to-high teens” ahead of the same period in 2024. Despite external pressures, the strong demand outlook offers reason for optimism as Ryanair continues to navigate a volatile yet promising market.