Ryanair half year profits soar 42% to €2.54bn

Ryanair expects to beat annual passenger carrying forecasts with numbers projected to grow by more than 3% to 207 million following a surge in first half profits.

 

Europe’s largest airline cited earlier than expected Boeing aircraft deliveries and strong demand in the first half of its financial year.  

 

Ryanair hailed a strong Easter with first half passenger levels up by 3% to 119 million as fares rose 13% year on year to give a 42% rise in net profits for the period to €2.45 billion on the back of 13% revenue growth to €9.82 billion.

     

The no-frills carrier now expects to surpass its previous projection of 206 million passengers this financial year.

 

Group chief executive Micheal O’Leary said: “Scheduled revenue increased 16% to €6.91 billion as traffic grew 3% but fares rose 13%.  

 

“Fares benefited from having the full Easter holiday in Q1, with weak prior year comparisons, and we achieved a full recovery of the 7% fare decline we suffered in last year’s Q2.  

 

“Ancillary revenue was solid, rising 6% to €2.91 billion. Operating costs rose 4% to €6.96 billion as our fuel hedges helped offset higher ATC [air traffic control] fees - up 14% - and environmental costs.”

 

He pointed to “effective cost control” as among actions to help offset increased ATC charges, higher environmental costs and ”the roll-off of last year’s modest [aircraft] delivery delay compensation”. 

 

Forward bookings for the current third quarter are “slightly ahead” of the same time last year, particularly across the October half-term and Christmas peaks.

 

However, fare growth is likely to be “more challenging” over the winter period, with the third quarter outcome to be determined by close-in Christmas and new year bookings.  

 

O’Leary added: “It remains too early to provide meaningful FY26 profit after tax guidance.  

 

"We do, however, cautiously expect to recover all of last year’s 7% full-year fare decline, which should lead to reasonable net profit growth in FY26.  

 

“The final FY26 outcome remains exposed to adverse external developments, including conflict escalation in Ukraine and the Middle East, macro-economic shocks and any further impact of repeated European ATC strikes and mismanagement.”   

 

He used the quarterly profit update to reiterate long-held criticism of European Commission president Ursula von der Leyen over environmental taxes and a failure to reform air traffic control to protect flights during national strikes.

 

“These reforms are urgent and it’s about time president von der Leyen stopped talking about reform and started to deliver it,” O’Leary added.

 

“While the Commission stands idly by, the EU Parliament is proposing even more stupid rules, such as further increasing free carry-on luggage limits – even though there is no room in the aircraft cabin for these extra bags - which will only lead to more airport security and flight delays as well as higher costs, and higher fares for Europe’s consumers.”