Irish low-cost airline Ryanair announced that its net profit fell by 16% in the financial year as it reduced ticket prices to increase passenger numbers.
Profit after tax fell to €1.61 billion for the 12 months to the end of March for the airline, which flies mainly in Europe, Ryanair said in its earnings report.
Revenue rose 4% to €13.95 billion, AFP reported.
A 7% drop in ticket prices led to an increase in passenger numbers to just over 200 million, compared with nearly 184 million passengers in the previous year.
"We cautiously expect to recover most, but not all, of last year's 7% decline in ticket prices, which should lead to a reasonable increase in net profit" in fiscal 2026, the company said.
Ryanair attributed the lower prices to tighter consumer budgets amid persistently high interest rates and inflation, unfavorable Easter holiday dates, and a sharp decline in bookings through online travel agencies.
The company warned that it expects only a 3% increase in passenger numbers for the 2026 financial year due to delayed deliveries from Boeing.
Production problems at US aircraft manufacturer Boeing have forced Ryanair to lower its growth forecasts several times.
Chief Executive Michael O'Leary also said last month that Ryanair may delay deliveries of new Boeing aircraft if the impact of US President Donald Trump's tariffs makes them more expensive.
Trump's tariffs, including on key aircraft materials such as aluminum and steel, along with retaliatory duties, risk disrupting global supply chains, which in turn will lead to higher costs across various sectors.
The airline warned that it remains "highly exposed" to risks from trade wars, macroeconomic shocks, and geopolitical conflicts, but that it is "too early to make any meaningful forecasts" about its prospects. | BGNES