Europe’s largest low-cost carrier, Ryanair, has reported a strong first half of the fiscal year, with profits climbing by around 42% to €2.54 billion. The results reflect a combination of higher airfares, early aircraft deliveries, and robust travel demand across Europe.
After a busy summer season, the airline has raised its full-year passenger forecast to 207 million, signaling continued momentum in the months ahead.
Growth Fueled by Pricing and Fleet Expansion
Chief Executive Michael O’Leary highlighted that Ryanair’s success this year stems from a balance of strategic fare increases, expanded capacity, and disciplined cost management. The airline lifted its average ticket price by 13%, bringing the average fare to about €58, as travelers continued to prioritize affordable short-haul trips across Europe despite inflation pressures.
Ryanair’s results also benefited from the early delivery of 23 new Boeing 737 MAX 8 aircraft, which allowed the company to expand its route network ahead of the peak summer period.
These new jets are more fuel-efficient, enabling Ryanair to keep operating costs low while adding capacity in key leisure markets. The carrier expects to receive more aircraft in the coming months, helping to further strengthen its position as Europe’s dominant budget airline.
The airline’s hedging strategy has also paid off. Ryanair has secured 80% of its fuel needs through 2027 at prices below $67 per barrel, protecting it from potential volatility in global energy markets. Combined with high load factors and increased yields, this has helped the company maintain one of the lowest unit costs in the aviation industry.
Across Europe, tight capacity due to delayed aircraft deliveries and higher demand has allowed Ryanair to sustain strong pricing. Many travelers have shifted from long-haul holidays to short, regional getaways, a trend that has worked in the carrier’s favor. Popular routes in Spain, Italy, and Eastern Europe experienced especially strong growth, supported by Ryanair’s aggressive capacity deployment strategy.
While the outlook remains positive, O’Leary cautioned that the 13% fare growth seen in the first half is unlikely to continue at the same pace for the remainder of the year. Economic uncertainty, fuel costs, and potential air traffic control disruptions could impact performance. Nevertheless, the airline expects continued profitability and steady traffic growth through the winter season.
Ryanair’s robust financial results stand out in a challenging operating environment for global aviation. The airline’s ability to raise fares while maintaining its low-cost advantage underscores the strength of its model and its adaptability to market changes. With new aircraft enhancing efficiency and a disciplined approach to expansion, Ryanair remains well-positioned to capitalize on Europe’s ongoing travel recovery.
