Ryanair's Q4 2025: Navigating Contradictions in Demand, Capacity, and Cost Guidance

Demand strength and pricing trends, capacity constraints and network optimization, unit cost guidance, demand and pricing trends are the key contradictions discussed in Ryanair's latest 2025Q4 earnings call.



Financial Performance and Pricing Trends:
- Ryanair Holdings plc reported a full-year profit of EUR1.6 billion, down from EUR1.92 billion the previous year, despite a 7% decline in airfares.
- The decline in profitability was due to a decrease in fares, but ticket revenue per passenger only fell 5%, indicating stronger than expected demand growth.

Capacity and Fleet Expansion:
- Ryanair's fleet grew by 181 aircraft to a total of 618, constraining growth to 3% this year due to Boeing's delivery delays.
- Despite these constraints, Ryanair expects to recover most of the previous year's 7% fare decline and achieve significant passenger growth.

Cost Management and Efficiency:
- Unit costs per passenger were flat, with significant contributions from strong hedging and operational productivity gains.
- Ryanair's ability to grow with flat or even decreasing unit costs is due to effective cost control, particularly with route and ATC charges.

Boeing and Delivery Delays:
- Boeing's delivery performance improved, with 45 aircraft delivered in April compared to 24 in the previous year, signaling a recovery in their manufacturing capabilities.
- The expected certification of the MAX 7 and MAX 10 aircraft will strengthen Ryanair's ability to benefit from future cost reductions.