Ryanair has paid off its last remaining debt, giving Europe’s largest airline a rare advantage over many of its rivals.
The Irish low-cost carrier announced that it had repaid a €1.2 billion bond issued during the Covid-19 pandemic. It is the first time since Ryanair went public in 1997 that the airline has been effectively debt-free.
The move means Ryanair now fully owns its fleet of 620 Boeing 737 aircraft without any loans or financial claims attached to them.
The airline says this will strengthen its position against competitors that still rely on borrowing money or leasing aircraft.
“This will further widen the cost gap with competitor airlines that depend on long-term debt and leasing to finance their aircraft,” said Chief Financial Officer Neil Sorahan.
With no major debt repayments to make, Ryanair has more flexibility to keep costs low and invest in future growth.
The airline reported a net profit of €2.26 billion in its latest financial year and held €3.6 billion in cash.
Ryanair is aiming to carry 300 million passengers a year by 2034, up from 208.4 million today.
The company also said it may borrow again in the future as it prepares to expand its fleet.
“We expect to return opportunistically to the bond markets in the future as we plan to take delivery of up to 50 Boeing MAX-10 aircraft per year from 2029,” Mr Sorahan said.
Despite its strong financial position, Ryanair still faces challenges, including delays in aircraft deliveries from Boeing and uncertainty linked to fuel prices and global tensions.
