London (AFP) - Irish no-frills carrier Ryanair on Monday said net profit fell 16 percent in its financial year as it cut ticket prices to boost passenger numbers.

Profit after tax slid to 1.61 billion euros ($1.8 billion) in the 12 months to the end of March for the airline that flies mostly across Europe, Ryanair said in an earnings statement.

Revenue increased four percent to 13.95 billion euros.

A seven percent drop in fares saw passenger numbers rise to just over 200 million, up from almost 184 million passengers the previous year.

“We cautiously expect to recover most, but not all, of last year’s seven percent fare decline, which should lead to reasonable net profit growth” in its latest financial year, the company said.

Ryanair attributed the lower fares to tighter consumer budgets amid persistently high interest rates and inflation, unfavourable Easter holiday dates and a sharp drop off in bookings via online travel agencies.

But chief executive Michael O’Leary signalled optimism for the peak summer season ahead.

“We are seeing robust summer 2025 demand across the network. Our forward bookings are strong,” he said in an online presentation on Monday.

Shares in Ryanair jumped around 3.5 percent in morning deals in Dublin after the results slightly beat analyst expectations.

It also launched a 750-million-euro share buyback programme over the next six to 12 months.

Despite the profit drop, Ryanair is “more bullish for this year, highlighting that demand is robust across Europe”, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

“Travellers are brushing off economic uncertainty and appear determined to ring-fence available budgets to spend on trips abroad,” she added.

- ‘Improving’ Boeing delays -

The airline warned that it expects just three percent growth in passenger numbers by March 2026 due to delayed Boeing deliveries.

Ryanair has lowered its growth forecasts several times as manufacturing issues at the US aircraft maker continue to affect Europe’s biggest airline by passenger numbers.

But O’Leary noted on Monday that these delays are “improving”.

Boeing had a bruising 2024 that included a labour strike of more than seven weeks, major safety issues on commercial planes and defence contract cost overruns.

O’Leary cautioned last month that Ryanair may defer deliveries of new Boeing jets should the fallout from US President Donald Trump’s tariffs make them more expensive.

Trump’s tariffs, including on key aircraft materials aluminium and steel, together with retaliatory levies risk hitting global supply chains, in turn hiking costs across sectors.

The airline said on Monday that it remains “heavily exposed” to risks from tariff wars, macroeconomic shocks and geopolitical conflicts but that it is “far too early to provide any meaningful guidance” on its outlook.