Ryanair profit falls as Boeing delivery delays bite
Ryanair’s annual profit dipped significantly in its latest financial period despite passenger numbers reaching record levels, as the Irish airline took a swipe at Boeing for aircraft delivery delays.
Europe’s largest airline reported a 16 per cent decline in post-tax profit to €1.61bn (£1.4bn) over the 12 months ended 31 March.
Ryanair blamed the drop in profit on a seven per cent decline in air fares, due in part to capacity constraints tied to Boeing delivery delays.
Annual passenger traffic reached a record 200.2m, up nine per cent year-on-year as European holidaymakers cashed in on cheaper flights.
The low-cost carrier has 330 planes on order from Boeing valued at around €27bn. However, the US planemaker has been grappling with a crisis of its own over the last year after a door panel on one of its jets blew out during an Alaska Airlines flight.
Boeing delays hit Ryanair outlook
Supply chain delays have hamstrung the world’s two largest planemakers, Airbus and Boeing, since the pandemic amid staff shortages and a dramatic rebound in travel demand.
There is also a mounting dispute over whether airlines or aircraft manufacturers should front the costs of higher tariffs following Donald Trump’s ‘Liberation Day’ announcement in April.
Ryanair’s operating costs rose nine per cent to €12.4bn, in part due to the wider supply chain issues, it said in a statement on Monday.
“While we cautiously expect to recover most, but not all of last years 7 per cent fare decline, which should lead to reasonable net profit growth in full-year 2026, it is far too early to provide any meaningful guidance,” chief executive Michael O’Leary said of the year ahead.
“The final full-year outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macro-economic shocks, conflict escalation in Ukraine and the Middle East and European ATC mismanagement/ short staffing.”
Ryanair on Monday also announced the departure of non-exec Howard Millar, a veteran of the company who served as its chief financial officer from 1992 to 2014.
Shares rose more than three per cent in early deals despite the decline in profit, with the company unveiling a €750m buyback programme.