February 16, 2025
Ryanair Reports Strong Q3 FY25 Profit Despite Boeing Delivery Challenges

Ryanair Reports Strong Q3 FY25 Profit Despite Boeing Delivery Challenges

Ryanair saw a significant increase in third-quarter FY25 profits, reporting a Q3 profit after tax of €149m, compared to the prior-year Q3 PAT of €15m.
Tailplane of a parked Ryanair aircraft.
Photo Credit: Ryanair

Ryanair has reported a significant increase in third-quarter FY25 profits. The carrier turned in €149 million profit after tax compared to €15 million in the same period last year.

The airline achieved this growth despite ongoing Boeing delivery delays, with passenger numbers rising 9% to 45 million.

However, the company’s nine-month cumulative profits of €1.94 billion showed a 12% decrease from the previous year, primarily due to 8% lower airfares.

Q3 FY25 Achievements


The third quarter showed several notable achievements. Revenue per passenger increased by 1%, reflecting both higher average fares and ancillary revenue growth.

The airline’s fleet expanded to 609 aircraft, including 172 Boeing 737 “Gamechangers.” The company has also completed more than half of its €800 million share buyback program. It announced an interim dividend of €0.223 per share, payable February 26.

Photo Credit: Ryanair

Financial Performance and Operations


Total revenue for Q3 grew 10% to €2.96 billion, with scheduled revenue rising 10% to €1.92 billion. The growth was supported by strong Christmas and New Year bookings, along with favorable comparisons to the previous year, which was affected by the OTA boycott.

Ancillary revenues showed robust performance, increasing 10% to €1.04 billion. Operating costs rose 8% to €2.93 billion, with fuel hedge savings helping to offset increased staff and other expenses related to Boeing delivery delays.

The airline has secured favorable fuel hedging positions, with Q4 FY25 approximately 85% hedged at $80 per barrel and FY26 over 75% hedged at $77 per barrel, providing protection against fuel price volatility.

A line of parked Ryanair aircraft.
Photo Credit: Ryanair

Fleet Expansion and Growth Strategy


Due to ongoing Boeing delivery challenges, Ryanair has revised its FY26 passenger target from 210 million to 206 million, representing 3% growth.

The airline expects to receive the remaining 29 Gamechangers from its current order before March 2026, with potential traffic growth recovery shifting to Summer 2026.

Boeing’s MAX 10 certification is anticipated in late 2025, potentially allowing for scheduled deliveries of Ryanair’s first 15 MAX 10s in Spring 2027.

The airline plans to focus its capacity growth on markets with favorable aviation policies, particularly in Poland, Sweden, and Italy. For Summer 2025, Ryanair has announced 164 new routes, bringing its total to 2,600.

Photo Credit: Ryanair

Market Outlook and Future Expectations


Ryanair anticipates continued capacity constraints in European short-haul markets throughout 2025, citing industry-wide challenges including Pratt & Whitney engine repairs and ongoing airline consolidation.

Despite these challenges, the company maintains its long-term goal of reaching 300 million passengers over the next decade.

For FY25, Ryanair projects passenger traffic of nearly 200 million, a 9% increase. The company provides guidance for FY25 profit after tax between €1.55 billion and €1.61 billion.

At the same time it acknowledges potential risks from geopolitical conflicts, further Boeing delays, and European air traffic control challenges.

Click the banner to subscribe to our weekly newsleter.

Click the photo to join our WhatsApp channel so then you can stay up to date with everything going on in the aviation industry!

Facebook
Twitter (X)
LinkedIn
Pinterest
Reddit
WhatsApp
Email
Threads

Leave a Reply

Your email address will not be published. Required fields are marked *