Price climb is justified by decreasing the company’s profits, although it has recorded a record number of passengers.
Ryanair, Europe’s largest low -cost airline, announced that prices will increase this summerafter a year of air tariff reductions has led to a 16% drop in annual profits.
The airline reported 1.6 billion euros for profit for the fiscal year of 2024-25, a decline attributed to a 7% drop in average ticket pricesdespite a record of 200 million passengers.
CEO Michael O’leary described the results as “very good,” given the challenges faced, particularly a dispute with online travel agents (OTAs) that temporarily interrupted some reserves. This disturbance forced the airline to Reduce rates to maintain occupancy rates high. Despite the setback, O’leary stressed that the airline is still Won about 8 euros per passenger.
Looking to the future, Ryanair expects prices to recover, projecting a 5% -6% increase during the upper summer season of 2025. Prices have already registered an increase of 15% During the Easter period, which indicates a higher price setting power in the future, says.
The airline is still waiting for 29 Boeing Jets 737 Max 8 for next summer’s program. Although Boeing’s manufacturing problems have improved, delays may extend to the fall, potentially exposing Ryanair to tariffs, depending on trade negotiations between the US and Europe.
To mitigate this situation, O’Leary suggested that Ryanair could record some of the new jets in the UK, thus around the EU potentials.
In the political front, O’Learry gathered with the attempts of labor leader Keir Stmerer to restore the relations between the United Kingdom and the EU. “Anything that reduces friction between the UK and Europe, we will be in favor – particularly some of the really stupid things,” he argues.
