Shares of Ryanair, Europe’s largest low-cost airline, rose 3.4% to 23.17 euros after the company announced strong summer travel demand and projected a rebound in fares that would recover much of last year’s decline.

“Demand is robust across the network, covering 37 countries,” said CFO Neil Sorahan. The company now expects average fares to rise by 7%, exceeding the 4–6% forecast made by CEO Michael O’Leary in March.

For the financial year ended March 31, Ryanair reported a 16% drop in profit, citing weaker demand and a dispute with online travel agents that led to a 7% decline in ticket prices. However, Sorahan stated that “most of that loss will be recovered.”

The airline posted an after-tax profit of 1.61 billion euros, in line with analyst expectations. For the current year, Ryanair anticipates only modest cost inflation, thanks to new aircraft deliveries, fuel hedging, and cost control measures countering higher taxes and air traffic fees.

The airline flew a record 200 million passengers despite Boeing delivery delays and aims to reach 206 million next year.

If the share price remains above 21 euros for 28 consecutive days, O’Leary stands to earn a bonus of nearly 100 million euros. Ryanair’s stock has remained above that level since May 2.