Ryanair Holdings Q1 2026 Earnings Call Transcript: Strong Q1 Profit After Tax at EUR 820 Million

Ryanair Holdings plc reported a Q1 profit after tax of EUR 820 million, a significant increase compared to the previous quarter. The company's revenue rose by 49% YoY to EUR 1.8 billion. Michael O'Leary, Group CEO, attributed the strong performance to the airline's ability to maintain high load factors despite the ongoing pandemic. Neil Sorahan, Group CFO, mentioned that the airline's cost base remains high due to the ongoing crew shortages.

Ryanair Holdings plc, Europe’s largest airline group, has reported a significant increase in profit after tax for the first quarter of the 2026 financial year. The company announced a 128 per cent increase in profit after tax, rising from EUR 360 million in the prior-year Q1 to EUR 820 million [1]. This substantial leap was driven by a 4 per cent rise in traffic to 57.9 million passengers and a 21 per cent increase in average fares to EUR 51 [1].

The Group’s total revenue for the quarter was up by 20 per cent to EUR 4.34 billion, with scheduled revenue seeing a 26 per cent increase to EUR 2.94 billion. Ancillary revenues climbed 7 per cent to EUR 1.39 billion, with the average spend on discretionary services per passenger rising by 3 per cent to over EUR 24 [1]. Despite the revenue growth, Ryanair maintained tight cost control, with operating costs increasing by a modest 5 per cent to EUR 3.42 billion, translating to just a 1 per cent rise per passenger [1].

Ryanair’s competitive jet fuel hedging largely mitigated the impact of a 16 per cent increase in Air Traffic Control (ATC) fees and higher environmental costs due to EU Emissions Trading System allowances unwinding and Sustainable Aviation Fuel blend mandates [1]. The airline continues to invest heavily in its modern fleet, with 181 Boeing 737-8200s now part of its 618-aircraft fleet. These new aircraft, dubbed “Gamechangers” by the carrier, offer 4 per cent more seats while consuming 16 per cent less fuel and reducing CO2 emissions [1].

In Q1 alone, Ryanair took delivery of 5 new aircraft and made a significant USD 500 million commitment to acquire 30 spare CFM LEAP-IB engines, which are expected to reduce fuel consumption and CO2 emissions per seat in its existing fleet by up to 20 per cent [1]. The airline’s network is expanding rapidly, with over 2,600 routes planned for Summer 2025, including more than 160 new routes [1].

Ryanair’s balance sheet is supported by a BBB+ credit rating from both Fitch and S&P. As of 30 June 2025, gross cash stood at a healthy €4.4 billion, with net cash increasing to EUR 2 billion (from EUR 1.3 billion at 31 March). This strong liquidity positions the Group to comfortably repay approximately EUR 2.1 billion in maturing bonds over the next 10 months using internal cash resources [1].

Despite the positive results, Ryanair acknowledges exposure to various external risks, including potential tariff wars, macro-economic shocks, escalation of conflicts in the Middle East and Ukraine, and disruptions caused by European ATC strikes and short staffing [1]. The company foresees European short-haul capacity remaining constrained until 2030, a situation it believes will allow for controlled profitable growth to 300 million passengers per annum by FY34, leveraging its widening unit cost advantage and robust balance sheet [1].

References:
[1] https://www.laranews.net/ryanair-q1-profits-surge-amid-higher-fares-and-increased-ticket-sales/
[2] https://trademagazin.hu/en/megugrott-a-ryanair-negyedeves-nyeresege/
[3] https://www.thejournal.ie/ryanair-baggage-fees-6768763-Jul2025/