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Introduction & Market Context
Ryanair Holdings (NASDAQ:RYAAY) PLC presented its Q1 FY26 results on July 25, 2025, highlighting a remarkable 128% increase in profit after tax despite ongoing challenges with Boeing (NYSE:BA) aircraft deliveries. The Irish low-cost carrier reported strong financial performance amid robust summer demand and recovering fare prices, positioning itself as Europe’s lowest-cost airline with a widening competitive advantage.
The presentation comes as Ryanair’s stock has been trading near its 52-week high of €24.78, with a slight pullback of 1.77% to €23.26 as of July 18, 2025. The company continues to leverage its strong balance sheet and industry-leading cost structure to navigate through delivery delays while planning for long-term growth.
Quarterly Performance Highlights
Ryanair delivered impressive Q1 FY26 results, with profit after tax soaring 128% to €820 million compared to €360 million in the same period last year. Total (EPA:TTEF) revenue increased by 20% to €4.34 billion, driven by a significant 21% rise in average fares to €51. Passenger numbers grew by 4% to 57.9 million, while maintaining a strong 94% load factor.
As shown in the following financial performance breakdown:
The airline’s total costs increased by only 5% to €3.42 billion, significantly lower than revenue growth, demonstrating effective cost management despite inflationary pressures. This cost discipline has been a cornerstone of Ryanair’s business model and continues to widen its competitive advantage.
Competitive Industry Position
Ryanair continues to strengthen its position as Europe’s lowest-cost airline, with a widening gap between its unit costs and those of competitors. The company’s extensive network now spans 93 bases and 233 airports across 37 countries, making it one of the most comprehensive carriers in Europe.
The following map illustrates Ryanair’s extensive European network:
A key competitive advantage remains Ryanair’s industry-leading cost structure. The presentation highlighted that Ryanair’s unit cost excluding fuel stands at €36 per passenger, significantly lower than competitors like Wizz Air, easyJet (LON:EZJ), and legacy carriers such as IAG and Lufthansa. This cost advantage ranges from 35% to over 100% depending on the competitor.
The following chart demonstrates Ryanair’s cost leadership position:
The airline also emphasized its environmental efficiency, positioning itself as the EU’s most environmentally efficient large airline with 64g CO2 per passenger/kilometer, outperforming many competitors in the sustainability arena.
Strategic Initiatives & Fleet Expansion
Ryanair’s balance sheet remains robust with €4.4 billion in cash and €2.3 billion in debt as of June 2025, resulting in a net cash position of €2.0 billion. This financial strength, coupled with a BBB+ credit rating from both Fitch and S&P, provides the foundation for the airline’s ambitious growth plans.
The following slide details Ryanair’s solid financial position:
A cornerstone of Ryanair’s long-term strategy is its order for 300 Boeing MAX-10 aircraft, which will support growth to 300 million passengers annually by FY34. These new aircraft will offer 20% more seats while reducing fuel consumption by 20% compared to current models, further enhancing the airline’s cost and environmental advantages.
The company’s growth trajectory is illustrated in this forecast:
Ryanair has also taken proactive measures to mitigate operational risks by purchasing 30 spare LEAP engines to improve operational resilience, particularly important given the ongoing challenges with Boeing deliveries.
Forward-Looking Statements
Looking ahead, Ryanair expects FY26 traffic to grow by 3% to 206 million passengers, a modest increase constrained by Boeing delivery delays. The company anticipates Q2 demand to remain robust with fares expected to recover most of the previous year’s decline.
Ryanair’s management expressed cautious optimism about recovering almost all of the previous year’s 7% fare decline but warned that economic downturns due to potential tariffs could impact demand and fares. The airline benefits from strong fuel hedging positions, with 84% of FY26 requirements hedged at $76 per barrel and 36% of FY27 needs secured at a favorable $66 per barrel.
The company’s ESG initiatives continue to gain recognition, with top ratings from major sustainability agencies. Ryanair highlighted its inclusion in the MSCI World Index in June 2025 and anticipated inclusion in the FTSE Russell index by September 2025.
While management remained cautious about providing specific profit guidance for FY26 due to limited visibility into the second half of the year, they emphasized that Ryanair’s combination of lowest costs, lowest fares, and strong balance sheet positions the airline as a long-term winner in the European aviation market.
Despite short-term challenges with Boeing deliveries, Ryanair’s presentation painted a picture of an airline with strong fundamentals, impressive quarterly results, and a clear path to long-term growth in both fleet size and passenger numbers over the next decade.
Full presentation:
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