Ryanair shares rise 6% as Q1 profit beats forecast by over €100 mln

Investing.com -- Ryanair (IR:RYA) shares rose 5% on Monday after the airline reported a first-quarter profit of €820 million, exceeding analyst expectations by more than €100 million, driven by higher fares and tight cost control.

The profit, up 128% from €360 million a year earlier, was supported by a 21% increase in average fares and a 4% rise in passenger traffic to 57.9 million. 

Revenue rose 20% to €4.34 billion, while operating expenses increased 5% to €3.42 billion. Scheduled revenues climbed 26% to €2.94 billion, and ancillary revenues grew 7% to €1.39 billion.

Fuel costs declined 2% to €1.46 billion. Ryanair said its hedging position, covering 84% of its FY26 fuel needs at $76 per barrel, helped mitigate market volatility. Excluding fuel, unit costs per passenger rose 2.6% year over year.

Operating profit reached €913 million, up from €365.7 million in the same quarter last year. Earnings before tax were €930.2 million, and basic earnings per share rose to €0.77 from €0.32. Load factor remained unchanged at 94%.

According to analysts at RBC Capital Markets, the results beat the company-compiled consensus of €716 million for net profit. 

They noted that the performance in the quarter could result in upward revisions to full-year forecasts if expectations for the second quarter remain unchanged.

Ryanair reiterated its full-year traffic guidance of 206 million passengers, representing 3% annual growth. 

The airline cited delays in Boeing (NYSE:BA) aircraft deliveries as a limiting factor. It also maintained its forecast of modest cost inflation for FY26.

The airline said fare increases in the second quarter would be less pronounced than in the first, which included the full Easter travel period. 

Ryanair expects to recover nearly all of the 7% fare decline it recorded in the prior-year second quarter and across FY25.

Gross cash stood at €4.4 billion as of June 30, after €622.8 million in capital expenditures and €340 million in debt repayments. 

Net cash increased to €2 billion from €1.3 billion at the end of March. Ryanair repurchased and cancelled approximately 2.8 million shares during the quarter under a €750 million buyback program, spending €58 million.

The airline’s fleet grew to 618 aircraft, including 181 Boeing 737-8200 “Gamechangers.” 

Ryanair expects to receive 29 more of these aircraft by summer 2026. It also reported the purchase of 30 spare CFM LEAP-1B engines to strengthen operational resilience.

Ryanair gave no formal profit guidance for the full year, citing limited visibility beyond the summer. 

The company said its final results remain subject to several external risks, including geopolitical tensions, air traffic control disruptions and macroeconomic shocks.