Ryanair Holdings (cdi) Q1 Earnings Call Highlights

Ryanair Holdings (cdi) Q1 Earnings Call Highlights Written by MarketBeat July 20, 2026 Share Link copied to clipboard. Key Points Ryanair’s Q1 profit fell sharply , with profit after tax down 34% to EUR 538 million as lower average fares and higher unhedged fuel costs outweighed a 6% rise in passenger traffic. Revenue and costs moved in opposite directions : total revenue rose 1% to EUR 4.38 billion, helped by 5% growth in ancillary revenue, but total costs jumped 11% as fuel prices spiked on the airline’s unhedged exposure. The airline kept its traffic growth target but withheld full-year profit guidance , citing weak fare visibility and volatile fuel costs, while continuing to emphasize its strong balance sheet and fuel hedging strategy. MarketBeat previews top five stocks to own in August . Ryanair Holdings cdi) (LON: 0RYA reported a sharp decline in first-quarter profit as lower fares and a spike in unhedged fuel costs offset higher passenger traffic, executives said during the company’s Q1 results presentation. Group CEO Michael O’Leary said profit after tax fell 34% to EUR 538 million from EUR 820 million in the prior-year quarter. He attributed the decline mainly to two factors: the cost of the airline’s 20% unhedged fuel position doubled during the quarter, and average fares fell 6%. O’Leary said the fare decline was driven by “the impact of the Middle East conflict” and the timing of Easter, with part of the holiday period falling into the prior-year fourth quarter. He also cited concerns about EU jet fuel shortages, economic uncertainty and later booking patterns as factors affecting demand and pricing. Get Ryanair Holdings (cdi) alerts: Sign Up Traffic Rises, But Fares Weigh on Revenue Ryanair carried 61.3 million passengers in the quarter, up 6% year over year. Group CFO Neil Sorahan said the increase was helped by 29 additional “gamechanger” aircraft in the fleet, with all 210 of those aircraft operating during the quarter. Load factors were flat at 94%. Scheduled revenue dipped 1% to EUR 2.91 billion as the traffic increase was offset by lower fares. Total revenue rose 1% to EUR 4.38 billion, supported by ancillary revenue, which Sorahan said increased 5% to EUR 1.47 billion. On a per-passenger basis, ancillary revenue was broadly flat at EUR 24. Costs rose faster than revenue. Unit costs increased 5%, while total costs were up 11% to EUR 3.81 billion. Sorahan said the main driver was fuel, particularly the unhedged portion of the company’s fuel needs, where the price doubled to more than $150 per barrel. Fuel Hedging Remains Central to Cost Strategy O’Leary and Sorahan emphasized Ryanair’s hedging position as a key buffer against volatile energy markets. O’Leary said the company’s conservative hedging policy, under which 80% of FY 2027 jet fuel is hedged at $67 per barrel, “has insulated our earnings during this period of very volatile oil prices.” Management said Ryanair has also begun hedging fuel for FY 2028. O’Leary said in his opening remarks that the airline had hedged the first 15% of FY 2028 fuel at $85 per barrel. Later in the presentation, he also referred to FY 2028 as “now 50% hedged at $85 a barrel.” In the Q&A portion, Sorahan stated that FY 2028 fuel was 15% hedged at $85 per barrel. Sorahan also said FY 2027 operating expenses are 90% hedged at $1.15 to the euro, while the first half of FY 2028 is 30% hedged at $1.20 to the euro. Balance Sheet Described as Debt-Free After Bond Repayment Ryanair highlighted its balance sheet strength following the repayment of its final EUR 1.2 billion bond in May. O’Leary said the repayment leaves the group “essentially debt-free.” Sorahan described the balance sheet as a “fortress,” noting that Ryanair has 620 fully unencumbered Boeing 737 aircraft on its balance sheet. At the end of June, Ryanair had more than EUR 2.8 billion in gross cash. O’Leary said that figure came after EUR 1.3 billion in debt repayments and EUR 500 million in capital expenditures. The company also has a EUR 1.1 billion revolving credit facility, which executives said is mostly undrawn. Sorahan said the company is rated BBB+ by both Fitch and S&P. He said Ryanair’s balance sheet is a competitive advantage, particularly as other airlines take on more expensive debt and leases. Management said the company is more than 90% through its EUR 750 million share buyback program and expects to complete it around the annual general meeting in September. Sorahan said Ryanair has bought back and canceled more than 25 million shares at an average price of EUR 26.35. The final dividend of EUR 0.195 per share is expected to be payable in September, subject to AGM approval. MAX 10 Deliveries Seen as Key to Long-Term Growth O’Leary said Boeing continues to expect certification of the MAX 10 in 2026 and has confirmed that Ryanair’s first 15 MAX 10 aircraft are expected to be delivered on time in spring 2027. Later in the presentation, O’Leary said Boeing was “pretty confident” the MAX 10