Tariffs pose little threat to aircraft deliveries from the US to Europe, Michael O’Leary, Ryanair Holdings chief executive, believes.
The airline said on Monday that lower fares sent profits falling 16 per cent to €1.61 billion in the 12 months to the end of March, its last financial year, when it carried a record 200 million passengers.
Ryanair is due to receive 29 Boeing 737 “game-changer” jets from the US manufacturer later this year, ahead of taking the first deliveries of a newer model, the 737 Max 10, before summer 2027.
Speaking after the company published financial results, Mr O’Leary played down any threat that tit-for-tat tariffs between the US and Europe might pose to deliveries.
“I do not see tariffs being a big issue,” he said. Mr O’Leary argued that US president, Donald Trump’s approach so far had been to announce tariffs and then to row back.
He noted that Ryanair had the option of taking delivery of aircraft in the UK, where it has a subsidiary, as the country recently struck a limited trade deal with the US.
“It’s for Boeing to count the tariffs. Our contract with them is for fixed-price on-delivery,” he pointed out.
However, Mr O’Leary stressed that if needed, Ryanair would work with the US manufacturer to arrange deliveries through countries not hit by tariffs.
Ryanair hopes US authorities will certify the Max 10, the biggest aircraft in the 737 family, later this year.
The Irish carrier has firm orders for 150 of these jets with an option on 150 more.
The Max 10 has 20 per cent more seats and burns 20 per cent less fuel, outperforming other models, including the game-changer, Mr O’Leary told analysts.
Delays have dogged delivery of the 210 game-changers that Ryanair ordered from Boeing, and will squeeze passenger growth to six million in the current financial year from 16.5 million during the last one.
However, its chief executive expects growth to normalise over the 12 months ending March 31st 2027, after it puts the 29 jets due later this year into service.
He added that under Kelly Ortberg, appointed chief executive last year, Boeing had improved both delivery times and quality.
Ryanair received several aircraft from Boeing this spring days ahead of schedule.
Its shares were up 3.7 per cent at €23.24 early on Monday afternoon.
Mr O’Leary acknowledged to analysts that the company’s performance was on track to reach targets that could earn him 10 million share options, priced at €11.12.
For these to vest, Ryanair shares must exceed €21 for 28 days between April 1st 2021 and March 31st 2028, or the airline’s profit after tax must exceed €2.2 billion in any year up to 2028.
Mr O’Leary pointed out that in addition, he had to remain as chief executive to July 2028. He must exercise the options up to the following February.
He declared that all Ryanair executives delivered good value to shareholders in an “era when premiership footballers and managers earn €25 million a-year”.
The Irish airline group said on Monday that revenues rose 4 per cent in the 12-month period to €13.95 billion from €13.44 billion.
Profit after tax slipped 16 per cent to €1.61 billion from €1.92 billion as passengers paid 7 per cent less on average than in 2024 for their flights.
Passenger numbers climbed 9 per cent to a record 200 million, the group said.
The airline said the absence of a full Easter in the first quarter, higher interest rates, weak consumer spending, and a drop off in online travel agent bookings prior to summer last year “necessitated repeated price stimulation”.
Spending on fuel and oil increased 2 per cent to €5.2 billion, while staff costs increased 17 per cent to €1.8 billion due to a larger fleet.
It said delays to the delivery of Boeing aircraft led to higher crewing ratios, while airport and handling charges rose 13 per cent to €1.7 billion, due to 9 per cent traffic growth and higher landing, ground air traffic control, and handling rates.
Gross cash was just under €4 billion despite €1.6 billion capital expenditure and more than €1.9 billion in shareholder returns.
Mr O’Leary said the board “remains committed” to shareholder returns and has now approved a follow-on €750 million share buyback which will likely run over the next six to 12 months.
Ryanair now has 181 “game-changer” B737-8200 aircraft in its 618 aircraft fleet. “This will restrict our full year 2026 growth to just 3 per cent, or 206m passengers,” Mr O’Leary said.
“We are working closely with Boeing to accelerate deliveries and are increasingly confident that the remaining 29 game-changers in our 210 order book will deliver well ahead of summer, enabling us to catch up delayed traffic growth into full year 2027.
“Boeing expects the Max-10 to be certified in late 2025 and so we continue to plan for the timely delivery of our first 15 Max-10s in spring 2027 with 300 due by March 2034.”
He said the airline is seeing “robust” travel demand across for the coming summer across its network.
“This year our constrained capacity growth is being allocated to those regions and airports who are abolishing aviation taxes and incentivising traffic growth,” he said.
He added that the airline expects European short-haul capacity to “remain constrained” for the next few years.
“These capacity constraints, combined with our substantial cost advantage, strong balance sheet, low-cost aircraft orders and industry leading operational resilience will, we believe, facilitate Ryanair’s controlled profitable growth to 300 million passengers per year by 2034.”
First quarter fares are on track to finish a mid-high teen per cent ahead of last year. The airline expects second quarter pricing to recover some of the 7 per cent decline it experienced in the same period last year.
The final first half outcome is, however, “heavily dependent” on close-in bookings and peak summer yields. “As is normal at this time of year, we have zero second half visibility,” the airline said.
“While we cautiously expect to recover most, but not all of last year’s 7 per cent fare decline, which should lead to reasonable net profit growth in the year, it is far too early to provide any meaningful guidance.”
