Ryanair profits soar after fare hikes and Easter demand boost

In Ireland, Ryanair has recently disclosed its first quarter profits, reflecting a substantial increase from the previous year. The airline reported profits after tax of 820 million euros for the three months leading to the end of June 2025. This significant rise in profits can be attributed to several key factors, including strong demand during the Easter holiday and a notable increase in ticket prices. The company observed that revenues surged by 20% to reach 4.34 billion euros, benefiting not just from seasonal travel but also from the rising fares that passengers were willing to pay to secure last-minute bookings. The average fare experienced a remarkable increase of 21% compared to the same quarter last year, bringing it to about 51 euros. This rebound in average fares followed a challenging previous financial year, where Ryanair had to reduce its prices by 7% due to lower consumer spending. Despite the positive growth in revenue and profits, the airline noted that passenger growth faced some limitations. For the first quarter, passenger numbers reached 55.5 million, which is only a 4% increase, falling short of expectations that many in the industry had due to the anticipated demand. Moreover, Ryanair's management has expressed cautious optimism about future fare increases, expecting to recover nearly all of last year's fare decline. However, the airline has been consistently lowering its annual passenger forecast due to ongoing delays in aircraft deliveries from Boeing. Each revision has reflected a more pessimistic outlook regarding the growth of passenger numbers in the highly competitive airline market, despite a strong summer travel period that was anticipated to further drive engagement. Ryanair's chief executive, Michael O’Leary, is hopeful that the strategic adjustments made and the operational challenges faced will eventually stabilize the company’s financial trajectory. Nevertheless, the airline has indicated that the fare increases may not continue at the same rate in the upcoming quarter, signaling a more cautious approach moving forward, which may affect profitability in the near term. As Ryanair continues to navigate through these challenges, its ongoing adjustments will be closely monitored, as they will ultimately influence the airline's ability to meet its passenger targets that have been successively revised downward.