Ryanair poised for another record-breaking achievement
Ryanair, Europe's largest airline, has shown a robust performance and a positive outlook as of mid-2025. For the fiscal year 2025 (ended March 31, 2025), Ryanair's revenue rose 4% to €13.95 billion, driven by a 9% increase in passenger traffic and a 10% surge in ancillary income. However, operating profit declined 24% to €1.56 billion and net profit dropped by 16% to €1.61 billion due to rising operating costs[1].
In the first quarter of fiscal 2026 (Q1 FY2026), Ryanair reported a net profit more than doubling to €820 million, up from €360 million a year earlier. This was fueled by a 4% increase in passenger numbers to 58 million and a sharp 21% rise in average fares. Total revenue for Q1 FY2026 climbed 20% to €4.34 billion, with scheduled flight revenue up 26% to €2.94 billion and ancillary revenues growing 7% to €1.39 billion. Operating costs rose only 5%, as efficient fuel hedging and a modern fleet helped offset price pressures[2][3][5].
Ryanair continues to expand with new Boeing 737-8200 "Gamechanger" aircraft, having received five in Q1 FY2026, enhancing capacity and efficiency. The airline maintained a high load factor of 94% and benefits from one of the strongest balance sheets in the industry, with a BBB+ credit rating, €4.4 billion in cash as of June 30, 2025, and limited debt[2][3][5].
The strong performance of Ryanair was reflected in its stock performance, with Ryanair's shares reaching a new all-time high this week[4]. Bernstein Research maintains an "Outperform" rating for Ryanair shares with a fair value of 28.00 euros. The stop-loss for Ryanair shares should now be adjusted to 19.80 euros[4]. Ryanair's shareholder, Ryanair (WKN: A1401Z), remains bullish on the airline[4].
The outlook for Europe's largest airline remains positive, with analysts attributing the bullish sentiment to Ryanair's strong market position, solid balance sheet, and excellent cost structure[4]. The Recovery Index, an index developed by Börsenmedien AG, has gained momentum since its April low, with Ryanair being a member of the Recovery Index, launched in 2020[4]. Börsenmedien AG holds the rights to the Recovery Index and has a cooperation agreement with the issuer of Ryanair's securities, which grants Börsenmedien AG a license to use the Recovery Index[4].
Summary of key metrics:
| Metric | Value (FY2025 / Q1 FY2026) | |-------------------------------|---------------------------------------------| | Total Revenue (FY25) | €13.95 billion (+4%) | | Passenger Traffic Growth | 9% in FY25; 4% in Q1 FY26 to 58 million | | Operating Profit (FY25) | €1.56 billion (-24%) | | Net Profit (FY25) | €1.61 billion (-16%) | | Q1 FY26 Net Profit | €820 million (+128% year-on-year) | | Average Fare (Q1 FY26) | €51 (+21% vs prior year) | | Ancillary Revenue Growth | 10% FY25; 7% Q1 FY26 | | Load Factor | 94% | | Fleet | 181 Boeing 737 MAX 8 out of 618 total | | Cash on Hand (June 2025) | €4.4 billion | | Credit Rating | BBB+ (Fitch and S&P) | | EPS Q1 FY26 | $1.74 (beat consensus $1.49) |
In conclusion, Ryanair has demonstrated robust traffic growth, improved yields driven by higher fares, strong ancillary income, and solid liquidity with prudent cost management despite inflationary pressures. The recent strong numbers have generated a new buy signal for Ryanair, with analysts supporting a favorable outlook for the airline in a turbulent aviation sector[1][2][3][4][5].
Investing in Ryanair's business could be a profitable venture, given its robust financial performance. The airline's net profit more than doubled in the first quarter of fiscal 2026, a testament to its resilience and growth in the face of industry challenges.
