Ryanair’s Profit Reaches All-Time High

Ryanair reported a €2.26 billion net profit for its financial year 2026, up 40 percent over last year’s €1.61 billion and the highest in the airline’s history. The Irish low-cost benefited from strong demand, with passenger volumes up by four percent to 208 million at a 94 percent load factor. This is slightly up from the guided 206 million despite delivery delays at Boeing. The profit after tax is pre-exceptional, as it includes a €85 million provision for a fine that the Italian competition authority levied in December. The full €256 million fine is related to the cancellation of flights in 2021 during the pandemic. Ryanair is confident that the fine can be overturned, especially since the Italian Council of State annulled it last week for discriminating against the airline. Operating revenues grew 11 percent to €15.5 billion, with ticket revenues up 14 percent and ancillary revenues by six percent. Fares were ten percent higher than the previous year. “That means that we recovered the seven percent decline in fares we saw in the prior year. Over the last two years, average fares were up by about three percent”, said Group CEO Michael O’Leary. Operating expenses were up six percent to €13.1 billion, with costs up in all segments despite cost control. The operating profit grew 52 percent to €2.4 billion, and the net profit to the aforementioned €2.26 billion. Ryanair intends to pay a final dividend of €0.195 in September, subject to AGM approval. MAX delays Despite delayed deliveries of 29 Boeing MAX 8200s, Ryanair has now received all 210 aircraft it ordered. This brings the fleet to 647 aircraft, of which 620 are unencumbered. The full fleet of MAX 8200s should contribute to the airline’s FY27 guidance of 216 million passengers. As the MAX accumulate flight hours, its CFM LEAP-1B require maintenance or, as Ryanair says, “mid-life hospital visits.” The carrier is covered by the purchase of thirty spare engines and a multi-year agreement with CFM for spare parts. From 2029, Ryanair will do all engine maintenance in-house at a soon-to-be-announced location. Maintenance costs for the 737-800 will also increase this year. The airline is now preparing for the arrival of the first of 150 firm MAX 10s plus 150 options, with 15 aircraft confirmed by Boeing for delivery next spring, in line with contracts with delivery dates between January and April 2027. The type is now in the final phases of certification, which Boeing expects to happen this late summer/early fall. Fuel FY27 is, of course, blurred by the geopolitical situation in the Middle East and the high fuel prices. “While we are 80 percent hedged at $67 per barrel, our unhedged 20 percent has doubled from March to April and May. Europe remains relatively well-supplied with jet fuel, and suppliers are pretty confident that there will be no disruptions up to the end of June and mid-July. We expect this to roll forward”, said O’Leary. “However, the big issue confronting us is that global fuel spot prices have spiked to over $150 per barrel. If they remain elevated at those levels for the remainder of the year, that will have an impact on our earnings.” For FY28, the carrier is not hedged at all. The effect on unit costs this year could be a mid-single-digit number. In FY26, unit costs were €36 per passenger. Looking ahead, Ryanair has a couple of financial priorities. It will repay a €1.2 billion final bond by the end of this month, needs to fund the MAX 10 Capex (60 percent hedged for the first 150 in cash), and fund the dividends and €900 million share buy-back program through September. New collective labour agreements result in “significant crew pay increases.” Environmental costs for offsetting under Europe’s ETS scheme grow by €300 million to €1.4 billion in FY27. This makes air travel in Europe uncompetitive, so Ryanair wants the European Commission to re-address the balance. Another priority is building back gross cash to €4.0 billion, the level it was at in FY25, but which dropped to €3.6 billion last year, "so that we are ready to confront any surprises." Demand remains robust, said O’Leary: “Volumes are strong, although the bookings window has moved closer in than it was last year.” He recommends customers book early as fares are expected to further increase. Ryanair has no plan to cut the flight schedule due to higher fuel prices. On the contrary, it will operate 130 new routes this summer season and has opened three new bases with low costs in Rabat, Trapani and Tirana. It is withdrawing from bases in countries where cost levels are too high. The airline recently said that Berlin Brandenburg will be closed on October 24, as costs are unacceptable to Ryanair’s liking. O’Leary said that he is in advanced negotiations with the Board to extend his contract to 2032, as the current one expires in 2028. The new contract entitles him to purchase ten million shares at February 2026 market prices, but it is conditional on meeting certain financial targets.

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