Ireland’s biggest airport could grow strongly next year but travellers will pay higher air fares, Ryanair boss Michael O’Leary predicted on Monday.
High fuel bills left Ryanair’s profits for the six months to September 30th trailing the same period last year by 15 per cent at €2.15 billion, the airline reported.
Speaking after the Dublin-based carrier published financial results, O’Leary cautioned that air fares would rise in Europe next year as airlines grappled with increased fuel costs sparked by the US-Iran war.
Ryanair would need a 20 per cent increase in ticket prices to cover a fuel bill that the airline says could be €2 billion higher.
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“But I don’t think the market will bear that,” O’Leary said. He calculated that prices could still rise by more than 10 per cent.
O’Leary repeated a pledge to add aircraft and two million seats at Dublin Airport in 2027 if the Irish Aviation Authority goes through with a proposal to cut charges levied on airlines there.
“We think Dublin could grow very strongly next year,” O’Leary said.
The airport could handle up to 40 million passengers by 2028, up from more than 37.5 million this year, he predicted.
That would bring numbers into line with a proposed increase in the airport’s controversial passenger cap, which Minister for Transport Darragh O’Brien is expected to approve in coming months.
Next year’s likely growth highlights the need to axe the Dublin passenger cap altogether, O’Leary said.
“There are two runways so it can do 60 million, that’s the only cap that should be applied,” he said.
Ryanair plans to cut costs next year to counter rising fuel bills.
That could include freezing pay after April 2027 for unions that have not agreed increases before then.
Irish, British, Spanish and Portuguese unions have yet to strike pay deals with the carrier, but most others across Europe have done so, according to O’Leary.
Other measures will include using artificial intelligence to boost productivity in support and back office, and slowing the rate at which it hires new crews.
Ryanair bought 80 per cent of its fuel needs for the 12 months to March 2027 at $67 (€60) a barrel in advance.
But a doubling in the cost of the remaining fuel contributed to a 10 per cent increase in costs over the six months to September 30th.
The airline has hedged 25 per cent of what it needs for its next financial year at $99 a barrel, O’Leary confirmed.
Revenue rose 3 per cent to €10.8 billion during the six-month period, the first half of Ryanair’s financial year, but average fares dipped 4 per cent to €57.50, the airline said on Monday.
Ryanair flew almost 126 million passengers during the six months, an increase of 6 per cent.
It has cut predicted passenger numbers for the 12 months to March 31st to 214 million from 215 million, O’Leary said.
He cautioned that profit for the current financial year remains “highly sensitive to adverse external developments”, including wars in the Middle East and Ukraine, fuel prices and European air traffic control disruption.
Ryanair will pay an interim dividend of 27.3 cent a share.
It also pledged to buy back €800 million worth of shares over 10 months from February.
The airline had €2.6 billion cash at the end of September. Its shares were up 3.5 per cent at €23.71 in Dublin shortly after 1pm on Monday.
