Ryanair FY26 Profit Rises 40 Percent to 2.26 Billion Euros

This article is based on an official press release from Ryanair.

Ryanair Holdings plc has reported a record-breaking financial performance for its 2026 fiscal year, which ended on March 31, 2026. According to the company’s official press release, the European low-cost carrier saw its pre-exceptional Profit After Tax (PAT) surge by 40% to €2.26 billion, up from €1.61 billion in the previous fiscal year. Including exceptional items, the reported PAT stood at €2.17 billion.

The airline achieved these results while navigating a complex operational environment characterized by aircraft delivery delays from Boeing, severe geopolitical volatility impacting global fuel markets, and regulatory hurdles in Italy. Despite these headwinds, Ryanair successfully grew its passenger traffic by 4%, reaching a record 208.4 million passengers for the year.

We note that the carrier’s ability to maintain a highly efficient 94% load factor indicates that flights remained as full as the previous year, underscoring robust consumer demand across its network of 95 bases and over 220 airports in 36 countries.

Financial and Operational Milestones

Revenue Growth and Cost Management

Ryanair’s financial results for FY26 demonstrate revenue growth that significantly outpaced cost increases. Total revenue increased by 11% to €15.54 billion. This was largely driven by a 14% rise in scheduled revenue, which reached €10.56 billion. The airline attributed this to a 10% increase in average fares, which recovered to approximately €51 per passenger following a 7% decline in the prior year.

Ancillary revenue, which includes optional extras such as baggage, seat selection, and priority boarding, also saw healthy growth. According to the earnings report, ancillary revenue grew by 6% to €4.99 billion, equating to roughly €24 per passenger.

On the expenditure side, pre-exceptional operating costs increased by 6% to €13.09 billion. However, Ryanair maintained strict cost control, with unit costs rising by only 1%. The company highlighted its robust balance sheet, reporting €3.6 billion in gross cash and an unencumbered fleet of 620 Boeing 737 aircraft. Subject to approval at the Annual General Meeting, a final dividend of €0.195 per share will be payable in September 2026.

Navigating External Headwinds

Boeing Deliveries and the MAX-10

Fleet constraints remain a primary bottleneck for the airline’s expansion. Ryanair ended the fiscal year with a total fleet of 647 aircraft, having received the final deliveries of its 210 Boeing 737-8200 “Gamechanger” order. The company noted that its 4% traffic growth was achieved despite delivery delays affecting 29 of these aircraft during the year.

With the “Gamechanger” order now fulfilled, Ryanair reported a drop in “other income” due to significantly lower delivery delay compensation from Boeing in FY26. Looking forward, the airline expects Boeing to achieve certification for the MAX-10 in late summer 2026, with the first 15 deliveries scheduled for spring 2027. These new aircraft are central to Ryanair’s strategy to reach 300 million annual passengers by FY34, as they offer 20% more seats and consume 20% less fuel.

Fuel Hedging as a Competitive Shield

Amid ongoing geopolitical tensions in the Middle East and the near-closure of the Strait of Hormuz, global jet-fuel spot prices have spiked to over $150 per barrel. In its press release, Ryanair detailed a highly advantageous fuel hedging strategy that insulates it from the worst of this volatility.

The airline has hedged 80% of its FY27 jet-fuel requirements at approximately $67 per barrel, a position valid through April 2027. While the unhedged 20% will face current market pressures, company leadership suggested that prolonged elevated oil prices could severely impact weaker, unhedged European competitors.

Italian Antitrust Fine

Ryanair’s FY26 results also reflect a regulatory challenge in Italy. In December 2025, Italy’s competition authority (AGCM) levied a €256 million fine against the airline, alleging that its direct-to-consumer distribution policy hindered travel agencies.

In response, Ryanair has provisioned €85 million, approximately 33% of the total fine, as an exceptional charge in its FY26 accounts. The airline strongly contests the penalty.

Ryanair considers the AGCM fine to be “baseless” and remains confident it will be overturned on appeal, citing a January 2024 Milan Court of Appeal ruling supporting its direct distribution model.

FY27 Outlook and Corporate Leadership

Withheld Profit Guidance

Looking ahead to FY27, Ryanair projects passenger traffic to grow by a further 4% to 216 million. However, the pricing environment appears softer. The airline anticipates first-quarter fares to decline by mid-single digits, while second-quarter fares are expected to remain broadly flat, heavily dependent on peak summer close-in bookings.

Due to macroeconomic risks, the Middle East conflict, and fuel price volatility, Ryanair has opted not to provide formal profit guidance for the upcoming fiscal year.

Citing “zero H2 visibility,” CEO Michael O’Leary stated it is “far too early to provide any meaningful FY27 profit guidance at this time.”

In corporate developments, negotiations are reportedly nearing completion to extend CEO Michael O’Leary’s contract until April 2032. The proposed extension includes a purchase option for 10 million shares, exercisable only if highly ambitious profit or share price targets are met.

AirPro News analysis

Ryanair’s FY26 performance cements its reputation as a highly resilient operator in the European aviation market. The stark contrast between Ryanair paying $67 per barrel for 80% of its fuel while spot prices soar past $150 per barrel provides the airline with a massive competitive moat. If fuel prices remain elevated, we could see a significant shake-up or consolidation among weaker European airlines that lack similar hedging protections.

For consumers, the financial success of the airline comes with a caveat. While Ryanair remains highly profitable, average fares rose 10% to €51 over the past year. However, the airline’s warning of flat or slightly declining fares for the upcoming summer suggests that consumer price sensitivity may be reaching a ceiling, making last-minute summer bookings a critical metric to watch in Q2 FY27.

Frequently Asked Questions

How much profit did Ryanair make in FY26?

Ryanair reported a pre-exceptional Profit After Tax (PAT) of €2.26 billion for FY26, a 40% increase from the previous year. Including exceptional items, the reported PAT was €2.17 billion.

How is Ryanair handling high fuel prices?

The airline has hedged 80% of its FY27 jet-fuel requirements at approximately $67 per barrel, protecting it from current global spot prices that have exceeded $150 per barrel.

Why was Ryanair fined in Italy?

In December 2025, Italy’s AGCM fined Ryanair €256 million over its direct-to-consumer distribution policy. Ryanair has provisioned €85 million for this and is actively appealing the decision.

Sources: Ryanair Corporate Press Release