The carrier refused to pay out to those affected by flight cancellations due to a 2018 pilots’ strike.

However, in January this year, the Court of Appeal ruled strike action was not “extraordinary circumstances” and the airline was liable to compensate passengers under EU261 rules.

Ryanair was due to appeal this ruling at the Supreme Court but has withdrawn its application and reached agreement with the CAA.

Paul Smith, CAA consumer director, said: “The Civil Aviation Authority undertook enforcement action against Ryanair due to the belief that strike action by airline staff does not constitute an ’extraordinary circumstance’ and, as such, affected passengers should be entitled to compensation where this results in the delay or short notice cancellation of their flight. 

“The judgment by the Court of Appeal supported this view.”

Ryanair declined to reveal how many passengers were involved but told TTG: “The UK Civil Aviation Authority and Ryanair reached a settlement on 30 November 2022 to end a legal dispute concerning passenger rights arising from flight cancellations caused by union-led strikes in the summer of 2018.

"The resolution reached between Ryanair and the CAA is consistent with a recent ruling of the Court of Justice of the EU on union led strikes, ensuring a uniform level of passenger rights across the EU and the UK.”