Ryanair Holdings plc (RYAAY)

Ryanair reported on 2 November that half-year profit after tax fell 15 percent to €2.15 billion from €2.54 billion 1. Unhedged jet fuel, the 20 percent of its fuel not bought ahead at a fixed price, doubled in cost, and average fares fell 4 percent 1. Traffic grew 6 percent to 125.8 million passengers, and revenue rose 3 percent to €10.08 billion 1.

October traffic added 1 percent more guests, 19.4 million against 19.2 million a year earlier 4.

Management said the Middle East conflict made travellers hesitant and bookings later, which held fares down early in the year 1. Chief executive Michael O'Leary said the company expects jet-fuel prices to remain elevated well into 2027 1. Fuel for this fiscal year is 80 percent hedged, meaning bought ahead, at about $67 a barrel, but only 25 percent of the next fiscal year is covered, at about $95 1.

The open question is cost: the next fiscal year's fuel bill is estimated at about €2 billion higher at current forward prices, and higher fares are unlikely to offset all of it 15. It is reviewing all costs, including maturing labour agreements that may require temporary pay freezes 1. It gave no profit guidance for the year 1.

Ryanair's current strategy dates to the early 1990s, when it became the first European airline to copy the low-fare model pioneered by Southwest Airlines in the United States 2. Its flights are short, direct routes between airports with no connecting hub, and in FY26 the average route was about 790 miles and the average flight about 2.25 hours 2.

The business grew from about 1 million passengers a year in 1991 to over 208 million in FY26 2. Its fiscal year ends on 31 March, so FY26 is the year that ended that March 2.

In 1994 it began standardising its fleet on used Boeing 737-200A aircraft, replacing most of its leased planes 2. It listed on the stock market in June 1997 2. From 1997 to March 2026 it opened services on about 2,200 routes 2.

In FY19 and FY20 it turned one airline into a group 2. It set up Buzz in Poland and Ryanair UK, acquired Lauda, and added Malta Air, with Lauda and Malta Air both based in Malta 2.

The pandemic cut capacity in FY21 because of European governments' response to Covid-19 2. The company agreed emergency job protection deals with unions that included temporary pay cuts 2.

Boeing orders shaped the fleet 2. In September 2014 Ryanair agreed to purchase up to 200 Boeing 737-8200 jets, 100 firm and 100 options, and in December 2020 it raised its firm orders from 135 to 210 2. All 210 had arrived by spring 2026, when supplier compensation ceased 12.

Returning cash to shareholders ran through buybacks: from FY08 to FY21 the group repurchased over 467 million shares at a cost of almost €5 billion 2. A €700 million programme was launched in May 2024, an €800 million one in late August 2024 and a €750 million one in May 2025 2.

In FY26 total revenue rose 11 percent to €15.54 billion from €13.95 billion, and operating profit rose to €2.37 billion from €1.56 billion 2. Profit after tax was €2.17 billion against €1.61 billion 2.

The company credits 4 percent traffic growth, 10 percent higher average fares and fuel hedging, which offset higher air traffic control and environmental costs 2. Ancillary revenue, from extras such as in-flight sales and internet services, rose 6 percent to €4.99 billion from €4.72 billion 2.

Passenger flights

Ticket sales, called scheduled passenger revenue, made up 68 percent of total revenue in FY26 and 66 percent in FY25 2. Traffic grew 4 percent to over 208 million passengers, and the average fare rose 10 percent to about €51 2.

In the first half of this fiscal year the average fare was €55.70 against €58.00, a 4 percent fall 1. The load factor, the share of seats filled, was 95 percent in both halves compared 1.

At 31 March the group flew 621 Boeing 737 jets 2. Of these, 210 were 737-8200 Gamechanger models with 197 seats and 410 were older 737-800 jets with 189 seats 2. It also leased 26 Airbus A320 aircraft, for a short-haul fleet of 647 2.

The company says the Gamechanger has 4 percent more seats and 16 percent less fuel use than the older jet 1.

Extras beyond the ticket

Ancillary revenue covers non-flight scheduled operations, in-flight sales and internet-related services, and it rose 6 percent to €4.99 billion in FY26 2. In the first half of this fiscal year it grew 6 percent to €3.08 billion 1.

Ryanair pushes customers to book direct: most reservations are made on Ryanair.com, with many more on its app 2. In 2024 several online travel agents signed agreements allowing them to sell its flights under rules on price transparency and genuine customer details 2.

Boeing 737 MAX 10

The 737 MAX 10 is a larger Boeing jet Ryanair ordered in May 2023: up to 300 aircraft, 150 firm and 150 options, for delivery from 2027 to 2033 2. In Ryanair's layout it seats 228 passengers, 39 or 21 percent more than its existing 737NG jets, with about 20 percent lower fuel use 2.

Travel Extra reported that Boeing received FAA certification for the 737 MAX 10 on 20 October 2026 7. Ryanair expects the European regulator EASA to certify it before year end and to take its first 16 jets in spring 2027 1.

How passengers rate it

Ryanair's own survey scores improved to 90 percent this summer from 89 percent, the company said 1. The consumer magazine Which ranked Ryanair last among short-haul airlines in its annual survey, with a score of 55 per cent, the Irish Times reported in February 9.

Ryanair dismissed the survey, telling the paper not to pay attention to its "fake results" 9.

People and places

Michael O'Leary has been a director since 1988 and chief executive since 1994, and became group chief executive in April 2019 2. Neil Sorahan has been group finance chief since October 2019 2.

The group has almost 35,000 aviation professionals and operates from 95 bases, connecting almost 220 airports in 34 countries 1. Its head office and training centre sit on freehold land at Airside Business Park in Dublin, and one of its maintenance hangars at Stansted is freehold 2.

Rivals

Management says its costs are among the lowest of any European scheduled airline group and that the gap with competitors is widening 2. In the half-year release it said many rivals carry expensive long-term finance and aircraft lease costs, and that some European carriers are already in Chapter 11 1.

Lufthansa began a German court case in 2006 over Ryanair's arrangements with Frankfurt (Hahn) airport and withdrew it in 2025 2.

Current problems

Italy's competition authority fined Ryanair €255.8 million in December 2025 for abusing a dominant position in dealings with travel agents, the Irish Times reported 82. Ryanair has appealed, and its annual report says the Italian court appeals will likely take up to three years 2.

The Spanish consumer ministry opened sanctioning proceedings in 2023 against Ryanair and other airlines over cabin baggage and other customer policies 2.

Skift reported O'Leary saying strikes in April or May of next year would be "helpful" to the company because "in the short term, they would save us money" 6. The company said fuel hedging helped it absorb a further €300 million rise in EU environmental taxes, crew pay increases under new multi-year labour agreements and higher maintenance 1.

The umbrella, in words

Ryanair Holdings is the parent of five wholly owned airlines: Ryanair DAC, Buzz, Lauda, Malta Air and Ryanair UK 2. Its annual report lists three principal subsidiaries: Ryanair DAC (Ireland), Aviation Finance and Leasing Limited (Malta) and Ryanair Finance DAC (Ireland) 3.

Ryanair has one class of ordinary shares, and 1,043,931,708 were outstanding at 31 March 2. Capital Group held 14.6 percent and Michael O'Leary personally held 4.0 percent at that date 2.

At 30 September, 30 percent of the issued share capital was held by EU nationals, who are entitled to exercise all the voting rights, which supports the EU ownership rules for its airlines 1.

The company expects FY27 traffic to grow 3 percent to 214 million passengers, after trimming the target from 216 million in September 1. It said winter traffic from November to March is set to be broadly flat on the year before 1.

Management says demand in the October to December quarter is strong, with fares trending modestly ahead of the same quarter a year earlier, but bookings come closer in, which reduces visibility 1. It said it has zero visibility on the final quarter, so it is too early to give profit guidance 1.

For summer 2027 the company plans to grow traffic to over 220 million passengers, up 3 percent, with 16 new MAX 10 jets 1. It has 126 more routes and a new base at Rimini on sale for that season 1.

The annual report puts MAX 10 deliveries between 2027 and 2033 and says Ryanair expects about 800 narrow-body aircraft by FY34 2. It also expects about 10,000 new jobs from the deliveries 2.

The company aims for sustainable, profitable growth to over 300 million passengers a year by FY34 1.

The board declared an interim dividend of €0.273 a share, payable in late February 2027, and another €800 million share buyback starting in February 1. The buyback is expected to run about 10 months, subject to market conditions 1.

For the following fiscal year the company estimates its fuel bill about €2 billion higher at current forward prices 1. It is reviewing costs, including airport negotiations, maturing labour agreements and more use of AI 1.

AFP reported that the company expects short-haul airfares to rise materially next year 5. Its appeal against the Italian fine goes to the Administrative Tribunal of Lazio 2.