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Ryanair revises fare hike projection upward
The Irish budget carrier now expects average ticket prices to climb by up to 9% this year, exceeding its earlier 7% forecast. The adjustment follows a surge in bookings and a projected 208 million passenger increase.
Quarterly earnings hit by Italian antitrust fine
Ryanair reported a sharp 83% drop in pre-tax profits for the October-December period, falling to €24.4 million from €143.7 million a year earlier. The decline was driven by a €256 million penalty imposed by Italy's competition authority for allegedly restricting travel agencies' access to its booking system.
Despite the fine, total revenue rose 9% to €3.21 billion, supported by a 6% increase in passenger numbers to 47.5 million.
Demand drivers and fare outlook
The airline attributed its optimistic pricing forecast to robust demand during peak travel periods, including the October half-term break and the Christmas-New Year season. Average fares for the quarter rose 4% to €44 (£38).
Legal dispute and industry challenges
Italy's competition watchdog accused Ryanair of employing tactics to deter travel agencies from purchasing flights, calling the practices "economically or technically burdensome." The airline dismissed the fine as "baseless" and vowed to appeal, arguing its direct-sales model benefits consumers by keeping fares low.
Ryanair also faced production delays from Boeing last year, which it said contributed to higher fares due to constrained capacity. However, CEO Michael O'Leary expressed confidence on Monday that deliveries of the new Boeing 737 Max 10 aircraft would arrive on schedule, starting in early 2027.
Long-term growth plans and risks
Ryanair aims to carry 300 million passengers annually by 2034, supported by an order for 300 Max 10 planes. The model offers 21% more seats and improved fuel efficiency compared to its current fleet.
O'Leary cautioned that full-year net profit, forecast to reach €2.23 billion, remains vulnerable to external risks, including escalating conflicts in Ukraine and the Middle East.
Public spat and booking boost
The airline recently made headlines after O'Leary rejected Elon Musk's Starlink technology for in-flight Wi-Fi, sparking an online exchange between the two executives. Ryanair reported a modest uptick in bookings following the publicity.
