Ryanair Expects Smaller Fare Increases, Faces Boeing Tariff Risks, European ATC Disruptions

Ryanair is navigating significant challenges related to aircraft deliveries and potential tariffs following the UK-US trade deal enabled by Brexit. The airline has a fixed-price agreement with Boeing for 29 outstanding 737-8200 planes but may delay taking delivery if tariffs are imposed, with Boeing expected to bear any tariff costs. CEO Michael O’Leary anticipates the US-EU tariff deadline may be postponed and is optimistic that commercial aircraft will be exempted from tariffs, although concerns about EU retaliatory tariffs on Airbus remain. Ryanair’s first-quarter results showed strong financial performance, including a 128% profit increase and a 21% rise in fares, but the company expects smaller fare increases in the upcoming quarter amid strong travel demand. The airline continues to face operational challenges, particularly from European air traffic control disruptions, which have caused significant flight cancellations. Ryanair’s growth strategy focuses on markets and airports reducing aviation taxes and incentivizing traffic, anticipating constrained European short-haul capacity through 2030 due to aircraft delivery delays and operational issues.