Ryanair hits record passenger numbers despite profit pressure from fuel costs

Ryanair carried more passengers than ever before in July, highlighting the strength of demand for low-cost air travel even as soaring fuel costs continue to squeeze the airline’s profits.

The Dublin-based carrier said it flew 22.2 million passengers last month, a 7 per cent increase compared with July 2025 and the highest monthly figure in its history.

Over the 12 months to the end of July, Ryanair carried 213.2 million passengers, up 5 per cent year-on-year as holidaymakers continued to prioritise cheaper flights despite wider pressure on household budgets.

The record traffic figures come after the airline warned that rising costs, particularly fuel, had taken a heavy toll on earnings.

Ryanair recently reported a 34 per cent fall in after-tax profits for the first quarter of its financial year, with earnings dropping to €538 million (£457 million) in the three months to the end of June.

The airline blamed the decline largely on higher jet fuel costs, with prices surging due to the impact of the Iran war. Around 20 per cent of Ryanair’s fuel requirements had not been hedged, leaving the company exposed to sharp increases in the market.

The carrier also cut average fares by 6 per cent during the quarter in an effort to stimulate demand and maintain passenger growth.

Despite the profit squeeze, the latest figures underline Ryanair’s continued dominance of Europe’s budget aviation market. The airline has benefited from strong appetite for affordable holidays, expanding routes and its ability to attract price-conscious travellers.

However, analysts are watching closely to see whether rising operating costs and geopolitical instability begin to erode margins after years of rapid post-pandemic recovery.

Ryanair has remained one of the industry’s most aggressive operators, using its scale and cost advantage to expand while rivals struggle with capacity constraints and higher expenses.

The record July passenger numbers provide a positive signal for the airline, but investors will be looking for evidence that strong demand can offset the mounting pressure on profitability.