Ryanair reports record profit but warns fares pressured by fuel costs

Ryanair, Europe's largest airline by passenger numbers, has reported record annual profits but warned that economic uncertainty and high fuel prices are pressuring airfares, with summer prices now expected to remain flat. The budget carrier said on Monday that after-tax profit for the year ended March 31 rose 40% to 2.26 billion euros, slightly ahead of analyst expectations.

Despite the strong annual results, the airline said pricing has weakened in recent weeks. It now anticipates a mid-single-digit percentage decline in fares for its first quarter ending in June and has revised its summer outlook. Pricing for the key July-to-September quarter is now trending "broadly flat," a downgrade from a previous forecast of a low single-digit increase.

Chief Executive Michael O'Leary said the easing of fares is a response to economic uncertainty caused by higher oil prices, fears of fuel shortages, and inflation risks impacting consumer spending. The airline stated it is too early to provide meaningful profit guidance for its current financial year due to significant volatility in fuel prices and supply.

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