Earnings call transcript: Ryanair Q1 2025 Profits Surge Amid Passenger Growth

Ryanair Holdings PLC, currently rated with a "GREAT" financial health score by InvestingPro, reported a significant increase in profits for the first quarter of 2025, driven by higher passenger numbers and increased fares. The company posted a profit after tax of €820 million, more than doubling from the previous year’s €360 million. Total revenue rose by 20% to €4.34 billion, contributing to the company’s impressive 44% stock return over the past year. Despite this robust performance, Ryanair’s stock saw a decline, with shares dropping 1.77% to close at €23.26.

Key Takeaways

• Ryanair’s Q1 profit more than doubled to €820 million.
• Passenger traffic grew by 4% to 58 million.
• Average fares increased by 21%, boosting revenue per passenger by 15%.
• Stock price fell by 1.77% following the earnings announcement.

Company Performance

Ryanair’s performance in Q1 2025 showcases its strong market position, with a notable increase in both passenger numbers and fares. The airline’s ability to maintain low costs and high efficiency continues to set it apart from competitors. Despite a challenging European aviation market, Ryanair managed to grow its passenger traffic by 4% and increase its average fares by 21%, resulting in a 20% rise in total revenue.

Financial Highlights

• Revenue: €4.34 billion, up 20% year-over-year
• Profit After Tax: €820 million, more than double the previous year’s €360 million
• Traffic: 58 million passengers, a 4% increase
• Ancillary Revenue: €1.39 billion, a 7% rise

Outlook & Guidance

Ryanair anticipates a constrained growth in traffic of 3% for FY 2026, reaching 206 million passengers, due to Boeing delivery delays. The company expects to recover nearly all of last year’s 7% fare decline and foresees modest unit cost inflation of 1-2%. Despite these challenges, Ryanair remains cautiously optimistic about achieving reasonable profit growth.

Executive Commentary

Michael, Group Executive, emphasized the transformative impact of the new aircraft, stating, "These aircraft will transform Ryanair’s economics and further widen the operating and cost gap between us and every other airline in Europe." He also highlighted the potential for growth, noting, "We could deploy all 300 of these aircraft today based on the growth deals we have at airports across Europe."

Risks and Challenges

• Supply Chain: Delays in Boeing and Airbus production could limit growth opportunities.
• Environmental Costs: Increasing environmental taxation in Europe could impact profitability.
• Market Saturation: The constrained European short-haul capacity poses a challenge for expansion.
• Cost Inflation: Rising costs, despite being modest, could affect margins.
• Regulatory Changes: Potential regulatory changes in the aviation sector could impact operations.

Q&A

During the earnings call, analysts focused on Ryanair’s strategies to mitigate environmental costs, which have risen to €1.1 billion. Questions also addressed the recent $750 million share buyback program and the final dividend of €0.227 per share. Executives reiterated their commitment to challenging European environmental taxation, which they described as "indefensible."

Ryanair’s strong financial results underscore its robust operational model, though the decline in stock price indicates investor caution amid ongoing industry challenges.

Full transcript - Ryanair Holdings PLC (RYA) Q1 2026:

Michael, Group Executive (likely CEO), Ryanair: Welcome to the Ryanair q one results conference call. As always, I’m joined this morning by our CF group CFO, Neil Sorensen, and we’re pleased to bring you the q one numbers this morning. As you’ll see, we posted early this morning on the rhinar.com website the Q1 results reporting Q1 profit after tax of €820,000,000, more than double the prior year Q1 PAT of $360,000,000. Traffic grew 4% to 58,000,000 passengers, but fares, as we have previously guided, have jumped significantly, on last year’s weak prior year comps. Remember, the two halves of Easter were in April year, only one half was in April.

And this time last year, we had that, boycott with the OTAs, which we have since resolved. So the Q1 highlights, traffic grew 4% to 58,000,000 passengers. Revenue per passenger rose 15%. Average fares were up 21%, a big jump, but against a weak prior year comp. Unit cost inflation has been just 1%, which means the cost gap between us and our airline competitors across Europe has materially widened as their unit costs have jumped significantly more than that.

We have very competitive fuel hedges in place that derisk the group from the recent fuel price volatility. Currently, we stand today, we’ve 86% of FY 2026 hedged at $76 a barrel. We have a 181, Boeing seven thirty seven game changers in our fleet of 620 aircraft, and that includes five deliveries we took in q one. This summer, we’ll operate over a 107 to 60 new routes in out of a total of 2,600 routes. In recent weeks, we announced a deal to buy 30 spare CFM LEAP one b engines at a significant discount, and we bought those to improve our resilience not just this summer, but for the next couple of years.

And we’re very pleased to set a report that Rainier was added to the MSCI World Index. I think, and you’ll see from the results, these numbers speak for themselves, so I don’t propose to dwell, too much on them. I would caution, however, that q one here is was artificially boosted by the two halves of Easter being in April and a weak prior year comp. Q2 will not be as strong. Nevertheless, for outlook, FY 2026 traffic remains on track to grow by just 3% to two zero six million passengers due and that is our growth is being constrained by heavily heavily delayed Boeing deliveries.

We expect modest unit cost inflation in FY twenty six as our delivery of more Boeing seven thirty seven game changers, advantageous fuel hedging and effective cost control across the group airlines helped to offset, dramatically increased ATC charges and higher even though entirely unjustified environmental costs. While S twenty five travel demand is strong, Q2 fare increases will be lower than the what we’ve just reported this morning in Q1, which benefited, as I’ve said, from the full Easter holiday in April and weak prior year comps. We, however, we now expect to recover almost all of last year’s 7% fair decline, that we suffered in Q2. We expect to get back almost all of that in the current Q2. The final H1 outcome, however, is very heavily dependent on the strength of close in bookings for the remainder of, August and September and is normal at this time of the year with zero H2 visibility, where the prior year fare comps normalize and last year’s modest delivery delay compensation will roll off.

It remains, therefore, too early to provide meaningful full year profit after tax guidance. We cautiously expect to recover almost all of last year’s 7% full year fare decline, which means the average we now expect the average fares this year will return to where they were in FY 2024. This should lead to a reasonable net profit growth, for FY twenty six. However, the final FY twenty six outcome will remain heavily exposed to any adverse external developments, that includes, obviously, the risks of tariff wars, macroeconomic shocks, conflict escalation in The Middle East, Ukraine, and European ATC strikes and mismanagement, which, continue to bedevil our summer operations. And with that, Neil, I hand over to you to take us through the slide presentation.

Neil Sorensen, Group CFO, Ryanair: Thank you, Michael, and good morning, everybody. Ryanair, as we know, has the lowest fares and lowest cost of any airline in Europe and indeed our cost advantage continues to widen over competitors. We’re number one for traffic and will carry two zero six million passengers this year. We’re number one for on time performance and reliability with high customer satisfaction scores. Sustainalytics and other rating agencies continue to rate Rainer very highly on ESG and our 300 Max 10 order will underpin a decade of growth and this coupled with our financial strength and lowest cost makes Ryanair the long term winner.

This summer, we’re operating a peak fleet of six eighteen aircraft, which as I previously said, should help deliver two zero six million passengers in the coming year. We’ve three thirty aircraft on order, including the remaining 29 in the Boeing game changer order book. And this shouldn’t facilitate growth, profitable growth 300,000,000 passengers by FY34. Our cost advantage continues to widen over all comers. You can see at the end of the quarter, 35 per passenger ex fuel, which is now nearly 80% lower than the next nearest competitor.

And we expect these cost gaps to just widen further and Ryanair’s competitiveness to increase over the coming years. On the quarter itself, as expected, we saw 58,000,000 passengers, 4% increase on last year at 94% load factors. Average fare recovered enjoying the benefit of a full Easter in April, week prior year comps and modestly higher close in bookings, so rose by 21% to EUR 51. We saw a solid performance from ancillary revenue, which was up 7% to CHF1.39 billion or up 3% on a per passenger basis. And as a result, total revenue increased by 20% to CHF4.34 billion.

Costs put in a strong performance rising 5% or 1% on a per passenger basis at 3,420,000,000 as we saw our strong fuel hedging offset significant increases in ATC, which was up 16% and rising environmental costs. So putting all of that together, we saw a profit in the quarter more than double to EUR $820,000,000. Balance sheet, Fortress balance sheet remains rock solid. It’s BBB plus rated by both Fitch and S and P. Uniquely, Ryanair owns our Boeing 737s.

They’re on the balance sheet unencumbered. And liquidity remains very strong, 4,400,000,000.0 in gross cash at the end of the quarter and over €2,000,000,000 in net cash, which places us in a strong position to repay our maturing bonds over the next ten months. And with that, Michael, you might take us through current developments, please.

Michael, Group Executive (likely CEO), Ryanair: Yes. Thanks, Neil. So we’re seeing robust December 25 demand. Fares are looks like they will recover last year’s decline. Q one was, as we have emphasized, artificially strong fares were up 21%.

We now expect q fare q two fares to recover almost all of last year’s 7% decline. So we have strong forward bookings, strong pricing, close in bookings remain reasonably, robust, but they are subject to, adverse, news flow, particularly the close in bookings as we move through the remainder of August and September. Disappointingly, we’ll have slower FY ’26 traffic growth. It’s only 206,000,000 passengers due to those Boeing delivery delays. We’re pretty confident at this stage though that we’ll get the remaining 29, the delayed 29, eight two hundred aircraft will be delivered this winter well in advance of summer twenty twenty six, and therefore, we catch up that growth to 215,000,000 passengers in FY twenty seven.

That constrained capacity means we have to be much more rigorous in where we allocate that growth, and we’re allocating those growth to regions like Sweden, regional Italy, Hungary, where we see, regions cutting taxes. I announced a big growth in, Warsaw Modlin last week, again, on the back of airports stimulating, traffic growth. We’re very well hedged, the fuel. And these fuel hedges don’t get us lower cost, but they do risk derisk the group the group from, volatility. So we’re 84% hedged for FY ’26 at $76 a barrel, and we’re already 36% hedged for FY ’27 at $66 a per barrel, a 13% saving into next year already locked away.

We did buy the 30 spare LEAP one b engines. We negotiated a meaningful discount on those engines, and I think that’s a sensible use of our balance sheet. When our partners are looking to raise money, we should be able to jump in there and buy CapEx in a way that improves resilience, but also lowers costs. We’re very pleased to have been included in the MSCI World Index in June, and we expect, the FTSE Russell, will include Ryanair when they review their index in September. The strong liquidity, as Neel has said, we have net cash of 2,000,000,000.

We need those funds though to be able to repay. We have very large debt repayments coming in the next twelve months, an 850,000,000 bond, repayment in September, and then the last, 1,200,000,000.0 bond in May. And we believe that this sets us up particularly, with Boeing get the MAX, 10, the MAX 10 certified by the end of this year for a decade of low fare profitable growth to 300,000,000 passengers by FY thirty four. Just to touch briefly on Boeing. So as I said, we have 618 aircraft in the fleet, including a 181 game changers, five of them delivered in q one.

The quality and the timeliness of Boeing deliveries has dramatically improved over the last twelve months. Boeing have hit their rate 38 production rate 38 of the seven three seven in May and did so again in June. And I think that’s a testament to the a good job Kelly Ortenberg, Stephanie Pope, and her team are doing particularly on the ground in Seattle. We’re therefore taking the final 29 game changers ahead of well ahead of summer twenty six. In fact, the first five of those aircraft are due to deliver in August.

Boeing asked us to take them early. It doesn’t suit us because we can’t deploy them, but we’re happy to take them early so we guarantee we don’t have any delivery delays running into summer of twenty twenty six. Boeing, have advised they expect the MAX 10 certification to take place seven and ten certification to take place in late twenty twenty five, might slip into q one of twenty six, but well ahead of our first deliveries, which are due, first 15 MAX tens are due in the spring of twenty twenty seven. And I’m pleased to say that Boeing have now confirmed in writing, their confidence that they will deliver those first 15 MAX 10s to us in the 2027 in time for the summer twenty seven twenty seven peak, travel. And these aircraft will transform Ryanair’s economics and further widen, the operating and the cost gap between us and every other airline in Europe.

These aircraft offer us 20% more seats, 228 seats. They burn 20% less fuel. They’re also 50% quieter. So they will dramatically transform, our cost base and make us, significantly more efficient going forward. And as you see, we set out a schedule there.

The only change there has been in FY 2026. We had originally planned to grow to two fifteen million. That growth has been staggered over the two years, 2026 and FY 2027. And then, we by which stage, we believe we will have eliminated all of the, Boeing delay issues that we’ve been struggling with over recent years. And we know already from our discussions with airports all over Europe, they can’t wait for us to take these aircraft.

We could deploy all 300 of these aircraft today based on the growth deals we have at airports, existing and new airports across Europe. But so we’re looking very much looking forward to those aircraft and to taking, those deliveries.

Neil Sorensen, Group CFO, Ryanair: So as Michael already said, we expect to deliver modest 3% growth this year, it’s February passengers. Having enjoyed a strong Q1, Q2 demand is robust and fares we believe should recover now most of the prior year Q2 decline. I have to caution, however, that the H1 outcome remains very dependent on close in August and September bookings over which we don’t have huge visibility at the moment. We would, however, cautiously expect at this stage that we’ll recover almost all of the prior year 7% fair decline that we saw last year. This depends on us obviously not having any tariff wars or economic downturns in the second half of the year.

On costs, we’re sticking with our previous guidance of modest unit cost inflation as we see our strong fuel hedges help offset rising ATC route charges and environmental costs. As we look into the second half of the year, as is always the case at this time of year, we’ve no visibility into H2. Again, I would flag that comps get tougher in the second half of the year where we saw the normalization of OTAs and fares in Q3 and Q4 last year. And indeed, we will start to see the modest Boeing delay compensation unwind as we take delivery of those final 29 game changers this year. So I think it’s probably too early to give meaningful profit after tax guidance at this stage.

We do, however, see fair recovery. We do have strong cost control in the business. And on the back of that, we would expect reasonable profit growth, but too soon to put numbers on that. This all is very much dependent as is always the case and no external shocks. So long as we don’t see economic downturns, tariff wars, geopolitical risks and ATC mismanagement, then I think we’re on track to perform well this year and indeed with the 300 aircraft order book, strong balance sheet in a strong position to grow profitably to 300,000,000 passengers per annum by FY ’34.

Jamie, Analyst/Interviewer: Michael, Neil, good morning. Starting with your results, Ryanair’s q one part more than doubled to 820,000,000. What were the key drivers? Yeah.

Neil Sorensen, Group CFO, Ryanair: We saw traffic increase by 4% to just under 58,000,000 passengers. This was driven with a fare recovery, 21% increase in fares, although we did benefit very much from having a full Easter in April. As you recall, there were weak prior year comps and then there was modestly stronger than we would have anticipated close in bookings, particularly in May and June. On the other revenue line, ancillaries, we saw another solid performance from our ancillary revenue increased by 7% to EUR 1,390,000,000.00 or on a per passenger basis a 3% increase just over €24 Costs put in a strong performance rising just 1% on a per passenger basis as we saw the benefits of our strong fuel hedging offset a 16 increase in ATC route charges and rising environmental costs. So we’re seeing the likes of the SAF blend mandates coming in this year, free ETS allowances starting to roll off, but you know overall a good performance in the quarter.

Jamie, Analyst/Interviewer: Ryanair enjoys competitive fuel hedging. What’s your current position?

Michael, Group Executive (likely CEO), Ryanair: Yeah. So we’re for f the remainder of FY ’26, we’re 85% hedged at $76 a barrel. That’s a 4% hedge saving on our hedge price in the prior year. And already for FY ’27, we’re 36% hedged at $66 a barrel, a 13% saving on our FY ’26 hedge rate. So we’re in a strong position both to make significant fuel cost savings, but also to eliminate the kind of volatility we saw and have suffered in recent months.

Jamie, Analyst/Interviewer: You mentioned environmental costs are increasing. How much are they this year?

Neil Sorensen, Group CFO, Ryanair: Yeah. It’s a big number. It was €850,000,000 last year included in our fuel cost, just over €4 per passenger. This year, due with the soft blend mandates coming in with the ETS free allowances rolling off, that’s going to increase over EUR 5.3 per passenger or about EUR 1,100,000,000.0, significant number as I said. And I think it’s remarkable that none of this gets recycled back into environmental projects across Europe.

We don’t see any of it going back into the production of SAF. We don’t see it going into latest technology aircraft. So I think if Europe are really serious about competitiveness, it’s timely that they take a hard look at this and abolish these penal taxes, because they’re they’re not delivering from an environmental perspective.

Jamie, Analyst/Interviewer: Turning to the balance sheet. Reiner’s industry leading balance sheet is triple b plus rated. What are the key call outs?

Michael, Group Executive (likely CEO), Ryanair: Well, the obvious one is the 600, Boeing seven three seven fleet, which is entirely unencumbered. We have strong liquidity. We’re currently at the quarter end sitting on about 4,400,000,000.0 of gross cash, just over 2,000,000,000 of net cash, but we need those funds as we have two very large bond repayments, coming at us in the next ten months, an 850,000,000 bond in September and a 1,200,000,000 bond, next May. But that puts in a strong position to pay down our debts, and hopefully by the middle of next year be entirely debt free with a large fleet of aircraft completely unencumbered. And I think that maximizes or increases, the financial flexibility, which also materially widens the cost gap between us and our competitors in Europe, most of whom are heavily indebted either through, bond and or aircraft leasing, and they’re exposed to expensive financing and aircraft leasing costs at a time when we own our aircraft.

And the only cost we pay out we suffer on those is depreciation.

Neil Sorensen, Group CFO, Ryanair: What is FY ’26 CapEx guidance? I think we’ll be close to about 2,200,000,000.0. Now that reflects the 30 spare CFM LEAP engines that we announced back in July. It doesn’t include any CapEx that may or may not be needed in relation to the engine shops that we’re looking at developing towards the back end of the decade. There may or may not be some CapEx in relation to tooling and spare parts this year.

And of course, it’s it’s heavily dependent on Boeing delivering the aircraft when they say they will, although we’d have a high level of confidence that we’ll get them all ahead of the summer next year.

Jamie, Analyst/Interviewer: Moving on to shareholder returns. Can you please update on the current share buyback?

Michael, Group Executive (likely CEO), Ryanair: Yes. As you know, we launched a $750,000,000 buyback program in May. We’re very early into that program. But during Q1, we bought and canceled about 2,800,000.0 shares at a cost of about €60,000,000 We’re happy with the brokers progress on the latest buyback, particularly given the MSCI indexation and lower market volumes.

Jamie, Analyst/Interviewer: When is the next ordinary dividends?

Neil Sorensen, Group CFO, Ryanair: Well, we’ve declared a final dividend of €22.7 cents and as always the case this is subject to AGM approval in September. So as soon as it’s approved it’ll be paid fairly quickly after that.

Jamie, Analyst/Interviewer: Shifting to fleet and growth, what’s the latest update on the MAX eight game changer deliveries?

Michael, Group Executive (likely CEO), Ryanair: Yes. So we took five additional game changers in quarter one. Currently, we have a 181 game changers in the fleet. We’re 29 aircraft short. We will take all of those deliveries this winter well in advance of summer of twenty twenty of twenty twenty six.

And I think the fact that Boeing have in recent months been hitting their rate 38 will enable them to go to the FAA and get clearance to increase to rate 42, leaves us much more confident that we will complete, this winter that the entire 210 game changer order and puts us in good shape then we think for the max 10 deliveries as well in the spring of twenty seven.

Jamie, Analyst/Interviewer: It’s Ronnie update on the max 10 certification.

Neil Sorensen, Group CFO, Ryanair: Well, Boeing are still indicating that they expect the seven and the 10 to be certified towards the 2025 with a slight risk that it might slip into early twenty twenty six. And we we’ve received confirmation from them recently and that they’re they’re they’re working very much on the basis that they’ll be delivering our first 15 max tens as per contract in in spring twenty twenty seven.

Jamie, Analyst/Interviewer: What’s the latest on aviation tariffs?

Michael, Group Executive (likely CEO), Ryanair: Well, like most industries, there’s still no real clarity. The US, however, has postponed the tariff implementation for the July 9 to the August 1. We believe, from publicly available sources that there’s progress being made on the EU, US, tariff negotiations. However, there is cautious optimism that commercial aircraft and aircraft leasing will be exempted from tariffs, primarily because The US is such a big exporter of aircraft engines and spare parts. However, in our agreements with Boeing, the purchase purchase price is agreed.

It’s a fixed purchase price, therefore tariffs will not be a problem for us. But we will work with Boeing to minimize any tariff impact on our aircraft deliveries, but we would hope that commercial aircraft will be exempt from the next round of tariffs as they have been for many years since the 1979 tariff exemption agreement.

Jamie, Analyst/Interviewer: What are your views on European short haul capacity?

Neil Sorensen, Group CFO, Ryanair: I’d expect European capacity to constrain for at least the next five years to to 02/1930. We see the two big OEMs, Boeing and Airbus, still behind on their production targets. Order books are full out to probably the middle of the 2030s. Then we’ve got the Pratt and Whitney engine issue continues to rumble on. And m and a is kicking off again in Europe.

Recently, had Air France saying they’re gonna bring their stake in SaaS up to 60%. The new government in Portugal are now going to put TAP up for sale in the coming weeks. Europe is getting more mentioned. So I see capacity usually constrained for some time to come.

Jamie, Analyst/Interviewer: Where are you allocating your constrained 3% growth this year?

Michael, Group Executive (likely CEO), Ryanair: To those countries and regions in Europe who are abolishing environmental taxes, Sweden, Hungary, regional Italy, where we’ve announced new bases this year, and also those airports who, like minded with Ryanair, are stimulating growth. And, again, I point to the fact that we announced a doubling of our Warsaw we’ll we plan to treble our Warsaw model in traffic over the next five years, rising 1.5 to 5,000,000 passengers on the back of a long term multiyear growth agreement, and we expect that trend will continue. There will continue to be new base, growth in Sicily, Poland, Modlin, in Hungary, and in Sweden. And we’re also expect to be announcing more new new bases and new routes this winter as we take delivery of 29 aircraft for summer twenty twenty six.

Jamie, Analyst/Interviewer: Moving on to ownership control at ESG. Rainer joined MSCI World in next June. Let’s join you update on Foothiros.

Neil Sorensen, Group CFO, Ryanair: Well, firstly, think I have to say we very much welcome Reiner’s full inclusion in the MSCI World Index. This has been a positive development for our shareholders. Looking at the criteria for FTSE Russell, we would expect to be included in their index when they do their next calibration in September. Although they have flagged that any inclusion will be on a phase basis probably over a two year period, but still if it happens another positive development.

Jamie, Analyst/Interviewer: What are Ryanair’s q one ESG highlights?

Michael, Group Executive (likely CEO), Ryanair: Well, I suppose it’s a taking delivery of five new, game changer aircraft, 4% more seats burned, 16% less fuel, and 20% less c o two emissions. We also continue to benefit from the winglet retrofit on the NG fleet. These winglets deliver one and a half percent fuel efficiency and a 6% reduction in noise. And I think we also the fact that we bought 30, new spare fuel efficient CFM LEAP-1B engines, at a decent at a reasonable discount shows our continuing commitment to buying new technology that will, lower our carbon, consumption, lower our emissions, and we expect that trend will continue. Although, Neil has said, you know, we and the other airlines, other European airlines are now campaigning vocally, for a reform of Europe’s failed environmental tax regime.

It is indefensible that European citizens and European airlines are the only ones paying environmental taxes, and the way to deliver that level playing field is to move ETS tax rates into line with Corcia, which is what the long haul non European airlines pay and we’ll continue to demand that move to Corcia rates ASAP. If Ursula von der Leyden again is serious about delivering competitiveness in Europe as the Draghi report has pointed to, we need a level playing field in the case of environmental taxes for air travel in Europe.

Jamie, Analyst/Interviewer: Can you give more detail on the LEAP engine deal?

Neil Sorensen, Group CFO, Ryanair: Yeah. It’s a big deal. It’s it’s a $500,000,000 investment at this price. Although, as Michael said, that there is a reasonable discount in there. So that will see our pool of spare engines increase to a 120, which is a massive investment by Ryanair in our operational resilience.

Importantly, these LEAP engines will be able to be used on not only our game changer aircraft, but on the MAX 10s when they come into the fleet and they’ll deliver over the next two years. In fact, we’ve already taken some of them this year, this summer, which helps underpin our twenty twenty five summer operational resilience as well.

Jamie, Analyst/Interviewer: And lastly, on outlook, what’s the group’s FY ’26 outlook?

Michael, Group Executive (likely CEO), Ryanair: Well, as we’ve said, we expect traffic growth would be constrained by only 3% this year to 200 and say 20 206,000,000 passengers. Q two demand that is September is robust. We now expect fares will recover most of the prior year 7% q two fare decline. However, the final outturn for h one is heavily dependent on the strength of closing bookings for the remainder of August and September. Nevertheless, we now cautiously expect to recover almost all of last year’s 7% fair decline in the full year.

As previously guided, we see modest unit cost inflation up 1% or 2% this year as our very strong fuel hedges are offsetting, runaway ATC cost increases and rising environmental taxes. It’s still too early to provide a meaningful guide for full year profit after tax guidance as we’ve zero H2 visibility and much tougher prior year comps in the second half of the year. But I think it’s reasonable to expect FY 2026 profit growth, reasonable profit growth with fair recovery and strong cost control. The final outcome, will, however, continue to be subject to shocks, tariff wars, conflicts, and, recurring and unacceptable ATC strikes. We had two ATC strikes on the French ATC strikes on the June.

We were forced to cancel 500 flights, over those two days, canceling the flights of nearly a 100,000 passengers. About 90% of those flights would have continued to operate if first of Andre Lane and the European Commission had simply protected overflights over France. And it is simply unacceptable that the commission continue to sit on its hand, allowing the single market to be shut down by a tiny number of French air traffic controllers. But we live in hope of seeing some reform and some, move towards competitiveness, within the EU Commission. Thank you for that.

And Neil, thank you very much. Jamie, thank you for the questions. And we look forward to talking you on the conference call, which will be held later on this morning at 10:00. Thank you.

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