Ryanair Projects Fare Increase Amid Strong Demand and Profit Decline

Ryanair Holdings plc has announced that it expects average airfares to rise by up to 9% in the current fiscal year, driven by robust passenger demand. The budget airline forecasts that passenger numbers will reach nearly 208 million, a 4% increase from earlier estimates. This revision reflects strong early bookings and earlier-than-expected deliveries of Boeing aircraft. Average fares during the three-month period ending December 2025 rose by 4% to €44 (£38), contributing to an overall revenue increase of 9% to €3.21 billion.

Ryanair to Raise Fares This Summer Amid Strong Demand and Profit DeclineRyanair expects fares to rise by up to 9% due to 'strong demand'Ryanair fares to rise as passenger numbers forecast to surgeRyanair profits slide after Italy fine, but airline lifts fare outlook on strong demand

Despite the rise in passenger traffic and revenue, Ryanair reported a significant decline in quarterly profits. The airline's profit after tax before exceptional items fell 22% to €115 million, down from €149 million a year earlier. This decline was primarily attributed to a €256 million fine imposed by Italy's competition authority for allegedly abusing its dominant market position by restricting access to its services for travel agencies. Ryanair has contested the fine, describing it as unjustified and expressing confidence in overturning it on appeal.

Ryanair to Raise Fares This Summer Amid Strong Demand and Profit DeclineRyanair profits slide after Italy fine, but airline lifts fare outlook on strong demandRyanair expects fares to rise by up to 9% due to 'strong demand'Ryanair fares to rise as passenger numbers forecast to surge

Ryanair's Chief Financial Officer, Neil Sorahan, emphasized the strength of consumer demand, stating, “Consumer demand is very strong. We’ve had our two best-ever booking weeks in the last couple of weeks. I see no slowdown in people wanting to get away.” The airline has also upgraded its full-year profit forecast, projecting annual after-tax profit to range between €2.13 billion and €2.23 billion for the year ending March 31, 2026.

Ryanair profits slide after Italy fine, but airline lifts fare outlook on strong demand

The fine from Italy's competition authority has drawn criticism from Ryanair, which argues that the penalty is excessive and detrimental to its financial performance. The airline's approach to direct-to-consumer sales is defended as a means to keep ticket prices lower, ultimately benefiting travelers. However, the regulatory scrutiny highlights ongoing tensions between low-cost carriers and regulatory bodies regarding market practices.

Ryanair expects fares to rise by up to 9% due to 'strong demand'

• “Consumer demand is very strong. We’ve had our two best-ever booking weeks in the last couple of weeks. I see no slowdown in people wanting to get away.” — Neil Sorahan, Chief Financial Officer, Ryanair.

Ryanair profits slide after Italy fine, but airline lifts fare outlook on strong demand

• “We now expect FY26 traffic to grow 4% to almost 208m passengers (previously 207m), due to strong demand and earlier than expected Boeing deliveries.” — Ryanair Financial Statement.

Ryanair expects fares to rise by up to 9% due to 'strong demand'

Looking ahead, Ryanair aims to expand its passenger volumes to 300 million by 2034, supported by a $40 billion (£31 billion) agreement with Boeing for 300 new 737-Max 10 aircraft, with deliveries expected to begin in spring 2027. The airline's ability to navigate regulatory challenges while capitalizing on strong demand will be crucial for its future growth and profitability.

Ryanair expects fares to rise by up to 9% due to 'strong demand'