Ryanair Holdings plc (RYAAY): Business Model Canvas [Dec-2025 Updated]

Ryanair Holdings plc achieved a 90% $\text{CSAT}$ score in October 2025 while flying 19.2m passengers.

The On-Time Performance ($\text{OTP}$) for October 2025 was 89% across 107,000 flights.

The $\text{CSAT}$ score for September 2025 was 88%.

The airline became the first $\text{EU}$ airline to carry 200m guests in one year during $\text{FY25}$.

The $\text{CSAT}$ score improved to 86% in $\text{FY25}$ from 85% the prior year.

The $\text{OTP}$ for August 2025 was 90%.

Unbundled service model: pay only for optional extras

Ancillary revenues reached €4.72bn in $\text{FY25}$, representing a 10% rise.

Ancillary revenue comprised approximately 30% of total income in $\text{FY25}$.

For $\text{H1}$ $\text{FY26}$, ancillary revenue rose 6% to €2.91bn.

Digital initiatives, such as app-based check-ins, have reduced customer care costs by 15%.

Digital initiatives save over €300,000 annually in paper costs.

A €20 fee for non-compliance with digital boarding is a new revenue stream.

The airline's Gross Profit Margin for $\text{FY2025}$ was 26.2%.

The Operating Margin for $\text{FY2025}$ was approximately 11.2%.

The Net Profit Margin for the year ending March 31, 2025, was 11.6%.

The following table summarizes key operational and financial metrics supporting these value propositions:

The focus on unbundling is further evidenced by specific revenue streams:

• Ancillary revenue growth of 10% in $\text{FY25}$.
• Ancillary revenue rising 6% to €2.91bn in $\text{H1}$ $\text{FY26}$.
• Digital initiatives saving over €300,000 annually in paper costs.
• New revenue stream from a €20 digital boarding fee.

The airline's operational scale and efficiency are reflected in its fleet and passenger volume:

• Fleet size of 618 aircraft at $\text{FY25}$ year-end.
• Projected passenger traffic of 206m for $\text{FY26}$.
• 181 $\text{B737}$ 'Gamechangers' in the fleet as of April 30, 2025.

The network expansion for the $\text{Summer 2025}$ schedule included:

• Over 160 new routes.
• 4 new routes from Rovaniemi in Finland.
• 2 new aircraft stationed at Madeira and Faro.

The commitment to reliability is shown by the monthly $\text{CSAT}$ trend:

• October 2025: 90%.
• September 2025: 88%.
• August 2025: 89%.
• May 2025: 90%.

Ryanair Holdings plc (RYAAY) - Canvas Business Model: Customer Relationships

Automated, transactional self-service via digital channels

You're seeing a clear push to digital-only interactions to strip away bureaucratic processes. Starting May 2025, Ryanair went fully digital, making online check-in via the website or the myRyanair mobile app mandatory for most flights, eliminating paper boarding passes entirely. This move is framed to cut costs and reduce paper usage by hundreds of tonnes annually. Previously, forgetting to download or print a pass could cost €66 at the airport. The digital transformation, supported by Ryanair Labs, targeted a 15% reduction in customer care costs (based on 2023 figures, showing the ongoing efficiency drive). The airline expects to carry 206 million passengers this year (Q1 FY26 projection) using this streamlined process.

Direct communication control via MyRyanair platform

The myRyanair account functions as a secure service portal. This is where customers manage bookings, access their digital wallet, and submit support cases for refunds and claims, ensuring direct control over their transaction lifecycle. The platform is designed for easy use, with all required information easily accessible.

Stricter enforcement of rules to manage costs and flow

Ryanair Holdings plc is using strict rule enforcement, particularly around baggage, to maintain operational efficiency and keep unit costs flat, which widened the cost gap to competitor EU airlines. The airline significantly increased incentives for ground staff to identify passengers breaching free cabin baggage limits.

The focus on compliance is clear in the updated ancillary fee structure:

• The standard small personal bag size must fit under the seat at 40 x 30 x 20 cm.
• Showing up with an unbooked 10kg bag at the gate could cost €55.
• Fines for oversized luggage were set to increase from €60 to €70 by November 2025.
• Booking Priority Boarding for an additional bag costs between €6 and €36 pre-booked.
• The fee for missing the digital boarding requirement is €20.

Ancillary revenues continue to be a major driver, rising 10% in FY25, while traffic grew 9%. In Q1 FY26, ancillary revenue was €1.39 billion, up 3% on a per-passenger basis.

Customer Service (CSAT) focus on low fares and on-time flights

The airline measures success through its Customer Satisfaction (CSAT) score, which it links directly to delivering low fares and reliable schedules. For the fiscal year ending March 2025, the CSAT score improved to 86% (up from 85% the prior year). Monthly data for 2025 shows strong performance, with October 2025 hitting 90% CSAT while flying 19.2 million passengers.

Here is a look at the monthly CSAT performance for the first part of 2025:

The airline became the first European carrier to carry 200 million guests in one year (FY25).

Finance: draft 13-week cash view by Friday.

Ryanair Holdings plc (RYAAY) - Canvas Business Model: Channels

You're looking at how Ryanair Holdings plc gets its product-seats on planes-into the hands of customers as of late 2025. It's a story of doubling down on direct sales while strategically managing third parties. The airline hit a record 200.2 million passengers in Fiscal Year 2025, with total revenue reaching €13.95 billion.

Ryanair.com website (primary sales channel)

The Ryanair.com website remains the core engine for sales, which is key because direct bookings keep distribution costs low. This focus is a direct response to past issues; for instance, the absence of a full Easter in Q1 2025 and a big drop off in Online Travel Agency (OTA) bookings prior to Summer 2024 forced repeated price stimulation throughout FY25 to drive traffic. Still, the direct channel is where the airline maintains full control over pricing and ancillary attachment. For the first quarter of Fiscal Year 2026 (ending June 2025), the average fare recovered strongly, rising 21% to €51, with scheduled revenue hitting €2.94 billion for that quarter alone.

MyRyanair mobile application for booking and check-in

The MyRyanair mobile application is the digital front door for many repeat customers. It is integral to the direct channel strategy, facilitating bookings and essential post-purchase interactions. The airline has been pushing app usage heavily, as evidenced by the new partnership structure with OTAs that now ensures customers booking through approved partners gain access to their myRyanair account without extra verification hurdles. This streamlines updates for passengers, which is a big win for customer experience, even when the initial sale happens elsewhere. The airline's operational efficiency hinges on this digital self-service model.

Approved Online Travel Agencies (OTAs) like Booking.com

Ryanair Holdings plc has shifted its stance on OTAs from conflict to collaboration, but only with approved partners. In August 2025, the company struck a landmark partnership agreement with Booking Holdings Inc, which includes Booking.com, Kayak, Priceline, and Agoda. This move brings these major players into the fold as 'Approved OTA Aggregators.' These agreements enforce full price transparency, a critical term that addresses past consumer harm. For context, an October 2025 survey showed unapproved OTAs like eDreams were still overcharging customers up to 176% over Ryanair's direct prices. The strategy is to channel traffic through partners who adhere to Ryanair's terms. This recalibration helped offset the prior year's OTA boycott impact, with ancillary revenues in Q3 FY25 rising 10% to €1.04 billion.

Travel Agent Direct (TAD) platform for traditional agents

To further solidify control over distribution and bypass parasitic intermediaries, Ryanair launched the Travel Agent Direct (TAD) platform in July 2025. This platform grants traditional travel agencies direct access to Ryanair's inventory. The goal is to align with partners who respect the airline's model, similar to the approved OTA structure. This is about ensuring that when a third party sells a ticket, the airline retains control over the customer data flow and pricing integrity. The network available through these approved channels now covers more than 235 destinations.

Here's a quick look at the scale of the business across these channels for the most recent reported periods:

The reliance on direct channels is clear when you see the ancillary revenue performance. In FY25, ancillary revenues were €4.72 billion, representing a significant portion of the total revenue base. The airline operates over 2,600 routes as of Q1 FY26, all flowing through these established distribution points.

• Direct bookings via Ryanair.com and the mobile app are prioritized for cost efficiency.
• Approved OTAs, including Booking Holdings brands, now offer full price transparency.
• The TAD platform was established in July 2025 for traditional agents.
• Unapproved OTA overcharges in October 2025 reached up to 176% above direct prices.
• FY25 traffic grew 9% to 200.2 million passengers.

Finance: draft 13-week cash view by Friday.

Ryanair Holdings plc (RYAAY) - Canvas Business Model: Customer Segments

You're looking at the core of Ryanair Holdings plc's operation, which is built on moving massive volumes of people at the lowest possible cost. Honestly, the numbers tell you everything you need to know about who is flying.

The budget-conscious leisure travelers are the foundation. This segment drives the sheer scale of the operation. For the full fiscal year 2025, Ryanair Holdings plc carried a record 200.2 million passengers, which was a 9% increase year-on-year, making it the first European airline to carry that many guests in one year. This massive volume was achieved despite the average fare declining by 7% in FY2025, showing the core strategy of price stimulation to capture this segment.

For the first six months of the current fiscal year (H1 FY2026, ending September 30, 2025), traffic was 119 million people, a 3% rise year-on-year, with scheduled revenue increasing by 16% as fares recovered by 13%. Even in November 2025, the load factor held steady at 92% across 13.8 million guests for the month.

The segments like students and young professionals seeking city breaks and families prioritizing cost savings are inherently captured within this low-fare structure. The airline's strategy is to make short-haul European travel accessible to the widest possible base, where price sensitivity outweighs the need for premium service attributes. The total revenue for FY2025 was €13.95 billion, with ancillary revenues contributing €4.72 billion.

Regarding SME business travelers, Ryanair Holdings plc's model has historically presented friction points. For instance, there were noted complications for corporates and business travellers concerning its online customer verification process, which was the subject of an ongoing inquiry by Ireland's Data Protection Commission as of early 2025. While the airline is a huge player, carrying 200.2 million passengers in FY2025, its historical presence on Global Distribution Systems (GDSs) was short-lived, suggesting a less formal integration with traditional corporate travel booking systems.

Here's a look at the scale of operations that serves these segments, based on the latest reported figures:

The airline's long-term traffic target is to reach 300 million passengers annually by fiscal year 2034. The current expectation for the full fiscal year 2026 is to carry around 207 million passengers.

You can see the customer base is defined by price sensitivity, which is why the average fare dropped by 7% in FY2025, even as traffic grew to 200.2 million. The core value proposition is clearly aimed at the leisure market, which is less concerned with the complexities that can affect the SME business traveler segment.

• Budget-conscious leisure travelers: Core volume driver.
• Students/Young Professionals: Target for short-haul, low-cost city breaks.
• Families: Benefit from low base fares.
• SME Business Travelers: Segment facing friction from verification processes.

Ryanair Holdings plc (RYAAY) - Canvas Business Model: Cost Structure

You're looking at the core of how Ryanair Holdings plc keeps its fares low, which is all about relentless cost control. This ultra-low-cost driven model means every euro spent is scrutinized. For the full fiscal year 2025 (FY25), the total operating costs reached €12.39 billion, marking a 9% increase compared to the prior year, even as traffic grew by 9% to a record 200.2 million passengers. The real win here is that the cost per passenger remained flat, showing their efficiency kept pace with rising expenses.

Here's a quick look at how those major costs stacked up, based on the latest available data points:

Fuel costs are a huge variable, but Ryanair Holdings plc mitigates this exposure through aggressive hedging. For FY25, fuel and oil costs for the nine months ending December 31, 2024, were €4.08 billion, which only rose 1% despite a 9% increase in sectors flown. This is the power of their strategy. They locked in a significant portion of future needs at favorable rates: FY26 fuel is almost 85% hedged at $76 per barrel, and they've already secured 36% of FY27 needs at just under $66 per barrel. This de-risks the Group from immediate fuel price spikes. Still, you should note that Q4 FY25 fuel was hedged at $80 per barrel.

Airport and handling fees are another area where the ultra-low-cost model bites. Route charges, for example, rose 11% to €263 million in Q3 FY25. The way Ryanair Holdings plc keeps this in check is by using secondary airports wherever possible, avoiding the premium charges of major hubs. Also, while costs rose, the impact of rising charges was partially offset by the operational efficiency gained from their newer, more fuel-efficient fleet.

Staff costs are definitely a rising component of operating expenses, which the CEO noted contributed to the overall cost increase alongside Boeing delays. The full-year operating cost rise of 9% to €12.39 billion in FY25 reflects these higher staff and other operational costs. However, the airline is actively managing this through productivity, aiming to keep unit costs flat despite these pressures.

For aircraft ownership and depreciation, the standardization of the fleet is key to lowering maintenance, repair, and overhaul (MRO) expenses. Ryanair Holdings plc owns virtually all of its aircraft, which is a massive advantage over competitors relying on leases. At the end of April 2025, the fleet stood at 618 aircraft, including 181 B737 'Gamechangers.' Depreciation itself increased by 11% to €292 million in Q3 FY25, mainly because there were 36 more 'Gamechanger' aircraft in the fleet driving higher amortization from increased utilization. The fact that their owned B737 fleet (over 590 aircraft) is fully unencumbered means they have a strong asset base to support their balance sheet, which is rated BBB+ by S&P and Fitch.

Ryanair Holdings plc (RYAAY) - Canvas Business Model: Revenue Streams

You're looking at how Ryanair Holdings plc translates its massive passenger volume into actual cash flow as of late 2025. The model is fundamentally dual-pronged: low base fares to drive volume, and highly monetized extras to drive profit. For the full fiscal year (FY25) ending March 2025, Ryanair Holdings plc reported total revenue of €13.95 billion.

The first major stream is the Scheduled Passenger Revenue, which came in at €9.23 billion for FY25. This revenue was generated despite a challenging pricing environment, where the average fare actually declined by 7% last year. Still, the airline managed to grow traffic by 9% to a record 200.2 million passengers, showing the power of their low-fare appeal even with consumer spending pressure. This stream is the engine that fills the planes.

The real margin driver, however, is Ancillary Revenue, which hit €4.72 billion in FY25, marking a solid 10% year-over-year increase. Honestly, this stream is critical; it represented approximately 30-32% of the airline's total income for the year. This shows you that while the base ticket price keeps you competitive, the extras are what really expand the margin. The focus here is on monetizing every optional service a traveler might need or want.

Here's a quick look at how those ancillary dollars break down across the key categories, based on the latest available full-year data and strategic initiatives:

You can see the specific levers Ryanair Holdings plc pulls to generate that €4.72 billion figure. They are very deliberate about how they structure these charges, often linking them to operational efficiency improvements as well. For instance, the push toward digital interaction has created new revenue points while cutting costs.

Specifically, the revenue generation within the ancillary bucket includes several distinct activities:

• Fees for checked baggage, which are heavily managed through policy enforcement.
• Revenue from passenger choice, such as seat selection and priority boarding options.
• Direct sales from onboard retail, covering food and beverages.
• Commissions earned through partnerships, like car rental and hotel bookings.
• New streams, such as the fee for non-compliance with digital boarding pass mandates, which started in May 2025.

To be fair, the success of the €4.72 billion ancillary haul is directly tied to the 200.2 million passengers carried in FY25. Finance: draft a sensitivity analysis on a 5% increase in baggage fee revenue for FY26 by next Tuesday.