Ryanair's 2026 Q1 Earnings Call: Dissecting Contradictions in Pay Increases, Fuel Hedging, and Traffic Growth

Employee pay increases, fuel hedging plans, Boeing delivery delays and traffic growth, OTA integration and ancillary revenue growth, fuel hedging strategy are the key contradictions discussed in Ryanair's latest 2026Q1 earnings call.



Strong Financial Performance in Q1:
- Ryanair Holdings plc reported a strong Q1 profit after tax rising to EUR 820 million, compared to EUR 360 million in the prior year.
- The growth was attributed to a weak prior year comparison, including a full Easter holiday in April and resolving the OTA boycott issues from the previous year.

Revenue and Cost Management:
- Traffic grew 4% to 58 million passengers, with revenue per passenger rising 15%.
- Average fares increased by 21%, driven by favorable Easter timing and the resolution of the OTA boycott.
- Unit cost inflation rose by just 1%, reflecting effective cost control measures despite increased ATC fees and aviation-related environmental costs.

Capacity and Fleet Expansion:
- Ryanair took delivery of 5 Gamechanger aircraft in Q1, bringing the total fleet to 181 aircraft.
- The company plans constrained passenger growth of 3% to 206 million passengers this year.
- Capacity growth is constrained by Boeing's delivery delays, but the company remains optimistic about future deliveries.

Environmental and Operational Challenges:
- Environmental costs rose by 5.3% pretax, significantly impacting operating costs.
- The company is well-hedged for fuel costs, with 85% hedged for FY '26 and 36% for FY '27.
- Ryanair continues to face challenges from ATC strikes, particularly in France, and is advocating for the protection of overflights during strikes.