Ryanair Shifts Growth to Morocco Amid EU Tax Frustration

The carrier is navigating a zone of strong geopolitical turbulence. The ongoing conflict in the Middle East deprives the company of any visibility for its second half, especially since the reopening date of the Strait of Hormuz remains unknown. In a statement received by On Bladi.net, Chief Executive Michael O’Leary explains that with the volatility of fuel prices, which have risen above 150 dollars per barrel, and supply risks, it is "far too early at this stage to provide any meaningful profit forecast" for the 2026/2027 fiscal year. Other factors such as the war in Ukraine, inflation, and air traffic control strikes are darkening the picture.

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Facing this situation, the low-cost boss lashes out at European Union environmental taxes, which will jump by 300 million euros this year. To overcome this loss of competitiveness, the company has decided to redirect its growth toward countries that ease aviation taxation. Morocco ranks high among the major beneficiaries of this expansion strategy, alongside Italy, Albania, Sweden, and Slovakia. Conversely, Ryanair plans to move away from markets deemed too heavily taxed, such as Germany, Belgium, or Austria.

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This reorganization comes as the group displays solid financial health in its latest fiscal year ended in March. Its profit jumped 35% to reach 2.174 billion euros, driven by a 10% increase in ticket prices and traffic of 208.4 million passengers. While the Dublin Stock Exchange coolly received the lack of outlook with the stock falling more than 2.5% in morning trading, the company maintains its long-term ambitions. It anticipates 216 million travelers for the current fiscal year and aims to reach 300 million customers by 2034.