Airlines

Ryanair reports a 34 per cent fall in profit in the first quarter

Fuel costs and a 6 per cent reduction in fares are having an impact. Revenue is up slightly, but fares are holding back profitability

by Mara Monti

20 July 2026

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3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Ryanair closed the first quarter of the 2027 financial year with a net profit of €538 million, down 34 per cent on the €820 million recorded in the same period of the previous year. The results were primarily affected by the sharp rise in the cost of fuel not covered by hedging contracts and the fall in average fares, influenced by geopolitical uncertainty in the Middle East.

Despite the fall in profit, the company continued to grow in operational terms, carrying 61.3 million passengers – a 6 per cent increase compared with the first quarter of the previous financial year.

Revenue up slightly, but tariffs are holding back profitability

Total revenue rose by 1 per cent to €4.38 billion. However, revenue from tickets fell by 1 per cent to €2.91 billion, as growth in passenger numbers was offset by a 6 per cent reduction in average fares.

According to Chief Executive Michael O’Leary, the company has had to adopt a more competitive pricing policy to stimulate demand against a backdrop of uncertainty caused by the conflict in the Middle East, fears of potential aviation fuel shortages in Europe, economic instability and bookings being made at increasingly short notice.

Ancillary revenue – which includes services such as baggage, seat selection and priority boarding – grew in line with passenger numbers, reaching €1.47 billion.

Fuel takes centre stage: operating costs up by 11%

The main factor that weighed on results was the rise in fuel prices. Operating costs rose by 11 per cent to €3.81 billion, whilst the price of fuel purchased without financial hedging – accounting for 20 per cent of requirements – more than doubled during the quarter, reaching around $150 per barrel.

Ryanair points out, however, that it benefits from a prudent fuel hedging policy: for the 2027 financial year, the group has already hedged 80 per cent of its requirements at an average price of around 67 dollars per barrel. Furthermore, it has also begun hedging for the 2028 financial year, with 15 per cent of its fuel consumption already locked in at around $85 per barrel, taking advantage of recent falls in oil prices.

Network expansion and new investments

In terms of commercial development, Ryanair has opened three new operational bases, including one in Trapani, and has also announced 130 new routes for the 2026 summer season.

The airline has also completed the delivery programme for the new Boeing 737-8200 ‘Gamechanger’ aircraft, which offer improved fuel efficiency and lower unit costs.

Ryanair is now debt-free

One of the most significant aspects of the quarterly results concerns the financial position. In May, the group repaid its final bond of €1.2 billion, thereby effectively becoming debt-free.

As at 30 June, Ryanair had cash and cash equivalents in excess of €2.8 billion, despite debt repayments of €1.3 billion and investments of around €500 million. In addition, it has a revolving credit facility of €1.1 billion, most of which remains undrawn.

According to O’Leary, the company’s financial strength gives it a competitive advantage over many European airlines, which continue to grapple with high financing costs, onerous lease agreements and greater exposure to fluctuations in fuel prices.

Share buybacks and outlook

Over the coming months, the group will focus its resources on financing the delivery of the new Boeing 737 MAX-10 aircraft, paying dividends to shareholders, completing the share buyback programme and strengthening its liquidity, with the aim of restoring gross cash to around €4 billion.

Despite a still uncertain geopolitical environment and pressure on ticket prices, Ryanair believes that its cost structure, fuel hedging strategy and strong financial position will continue to be key factors in supporting growth and maintaining its competitive advantage in the European market.