Impressive Start to the Fiscal Year – Double-Digit Growth in Profit and Yield

European low-cost airline Ryanair kicked off fiscal year 2026 on a strong note with a sharp and extraordinary 128% increase in net profit, reaching €820 million, compared to €360 million in the same quarter last year. This unprecedented surge reflects not only the return of air traffic to normal following COVID-19 restrictions but also the company’s ability to extract maximum value from fluctuating demand through dynamic pricing and operational efficiency. Ryanair’s total revenues reached €4.34 billion, a 20% increase year-over-year, with the average fare rising by 21% to €51. Passenger numbers also increased – from 55.5 million to 57.9 million – reflecting a 4% growth, while the load factor remained steady at 94%

Continued Cost Control – An Embedded Competitive Advantage

Ryanair’s business model is built on tight cost-saving mechanisms and meticulous management of every cost component. Data shows that the unit cost per passenger, excluding fuel, stands at only €36 – significantly lower than competitors. For comparison, Wizz Air’s cost is €59, EasyJet’s is €85, and legacy carriers like Lufthansa and AFKLM report €170 and €250, respectively. These gaps represent a structural advantage that allows Ryanair to offer highly competitive fares even in volatile markets, without compromising profitability. This cost efficiency highlights the company’s ability to grow while maintaining strong profit margins, even during economic stress or rising fuel prices

Strong Cash Flow and Unencumbered Assets – Financial Resilience

One of Ryanair’s core strengths is its conservative and robust balance sheet, enabling quick response to crises and strategic opportunities. As of June 2025, the company’s total assets stood at €18.1 billion, including €4.4 billion in cash. Debt was reduced from 2.7 to €2.3 billion, while equity rose to €7.4 billion. A key highlight is the net cash position of €2.0 billion, a result of prudent management, strong operating cash flow, and limited short-term liabilities. This allows Ryanair to maintain a high credit rating (BBB+), repay debts with ease – including a scheduled €850 million payment in September – and fund future investments without relying on aggressive borrowing

Growth Drivers: Modern Fleet, ESG, and Global Index Inclusion

Ryanair is strategically planning for the next decade with data-driven precision. The company has ordered 300 new Boeing MAX-10 aircraft, to be delivered by 2034. These planes will add 20% more seats on average while reducing fuel consumption by 20%, a combination that yields both significant economic savings and improved environmental metrics. The company aims to reach 300 million passengers annually by FY34 – over 60% growth compared to 184 million passengers in FY24. Moreover, Ryanair recently joined the MSCI World Index and is expected to enter the FTSE Russell Index later this year – moves that enhance its visibility among institutional investors and bolster its image in the ESG (Environmental, Social, Governance) sphere. Today, it is already Europe’s leading airline in environmental efficiency per passenger

External Risks and a Cautious Forecast for the Year Ahead

Despite the impressive figures, Ryanair’s management has opted not to publish full profit guidance for the current fiscal year, citing growing global uncertainties. Factors such as wars, geopolitical instability, potential fuel tariffs, strikes, or shortages in air traffic control or maintenance staff could impact demand, pricing, and operational schedules. Still, the company expects to maintain modest growth of 3% and reach 206 million passengers this year, with a high load factor and competitive pricing expected to recover from last year’s fare declines. Ryanair’s fuel hedges (84% for FY26 at $76 per barrel) offer a major economic edge over competitors with lower hedge coverage

A Calculated Bet: Economic Logic and Strategic Timing

Ryanair’s success story lies in the blend of industry-low costs, strong financial discipline, and long-term strategic vision. The company shows a high degree of adaptability to shifting conditions, whether economic downturns, intense competition, or rising environmental costs. With a young fleet, growing market share, strong brand, and unencumbered assets – Ryanair is well positioned to continue cementing its role as Europe’s leading airline in the decade to come