Ryanair Reports 16% Drop in Annual Profit Amid Price Cuts
Dublin, Ireland – Ryanair, the leading no-frills airline in Europe, announced a 16% decline in its net profit for the financial year ending March 2023, attributing the dip to aggressive ticket price reductions aimed at attracting more travelers. The airline’s profit after tax fell to €1.61 billion ($1.8 billion), despite a 4% increase in revenue to €13.95 billion.
A notable 7% drop in fare prices resulted in a significant rise in passenger numbers, exceeding 200 million, up from nearly 184 million the previous year. Ryanair expressed a cautious optimism, foreseeing potential recovery from the fare declines in the upcoming financial year, which may lead to a moderate increase in net profits.
However, the airline highlighted challenges affecting future growth. A projected 3% increase in passenger numbers for the 2026 financial year is tempered by delayed Boeing jet deliveries, compounded by manufacturing issues at the U.S. aircraft manufacturer. CEO Michael O’Leary indicated that ongoing geopolitical tensions and trade tariffs could further influence costs and growth forecasts.
Both tariff wars and macroeconomic uncertainties continue to pose risks to the airline’s operational stability. While Ryanair remains optimistic about market recovery, it acknowledged the difficulty in providing precise guidance for the future amidst these challenges.
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