Ryanair Reports 42% Surge in Profits for First Half of 2026 Fiscal Year

Ryanair Holdings, the parent company of the Ryanair airline group, has announced impressive first-half results for the fiscal year 2025/26 (1H26), marking significant growth compared to the previous year. The airline group, which includes Ryanair, Ryanair UK, Malta Air, Buzz, and Lauda Europe, also saw a rise in passenger traffic, maintaining a robust network load factor of 95%.

Financially, profits after tax for H126 surged by 42% to €2.54 billion ($2.92 billion), with traffic increasing by 3% to 119 million passengers, up from 115.3 million in 1H25. The group reported a 20% increase in profits for the second quarter of 2025/26, reaching €1.72 billion ($1.98 billion), compared to €1.43 billion ($1.64 billion) from the previous year.

During this period, total revenues climbed 13% to €9.82 billion ($11.29 billion), with revenue per passenger rising by 9%. Average fares went up by 13%, and ancillary revenue also saw a 3% increase. Scheduled revenue was bolstered by a strong Easter period, growing 16% to €6.91 billion ($7.95 billion).

Operating costs experienced a 4% rise to €6.96 billion, driven mostly by increased air traffic control fees, which were up 14%, alongside higher environmental costs. However, effective fuel hedging helped to control these expenses. By September 30, 2025, Ryanair’s gross cash reached €3 billion ($3.45 billion), while net cash increased from €1.3 billion ($1.49 billion) to over €1.5 billion ($1.72 billion), and the fleet consisted of 636 aircraft.

Commenting on the financial performance, Ryanair Group CEO Michael O’Leary stated, “This financial strength enhances the gap between Ryanair and our competitors, many of whom are still dealing with costly long-term financing and rising aircraft lease expenses.”

In May 2025, the airline initiated a €750 million ($862.5 million) share buyback program. By September 30, 2025, Ryanair had repurchased and canceled over 7 million shares, which is about 25% of the total program, at a cost of €188 million ($216.2 million). The Board has also declared an interim dividend of €0.193 ($0.22) per share, payable in late February 2026.

An Enhanced Aircraft Delivery Outlook

O’Leary noted that Ryanair has benefited from an improved delivery schedule from Boeing throughout 2025, allowing the airline to accommodate more passengers in 1H26 while selectively increasing capacity for peak travel seasons, such as the upcoming Christmas and New Year period. The airline operated 204 Boeing 737-8200 “Gamechangers” by the end of October 2025, with anticipation of the remaining six aircraft from an order of 210 to be delivered ahead of 2026, enabling a projected traffic growth of 4% to 215 million in 2026.

Boeing is expected to achieve MAX-10 certification by mid-2026 and fulfill the delivery dates for the first 15 MAX-10s in Spring 2027, with plans for 300 of these fuel-efficient planes to be delivered by March 2034. To prepare for the MAX-10s, Ryanair aims to accelerate recruitment for cadet and first officer positions over the next three years, investing approximately €25 million annually in training. This strategy is aimed at strengthening the pool of home-grown first officers ready for promotions when deliveries ramp up in fiscal year 2029/30.

Additionally, the airline has taken advantage of the recent weakness of the US dollar, hedging around 35% of their MAX 10 firm order for 150 aircraft at an average exchange rate of 1.24, securing further capital expenditure savings on these low-cost planes.

To optimize winter 2025/26 operations, Ryanair is reallocating its limited capacity to regions and airports that are actively reducing aviation taxes to stimulate traffic growth, such as Sweden, Slovakia, Italy, Albania, and Morocco. This shift involves moving flights and routes from high-cost markets like Germany, Austria, and regional Spain.

The trend is expected to persist into 2026, with over 2,500 routes available for booking, including new bases in Tirana and Trapani, adding 91 extra routes. Anticipation remains that European short-haul capacity will be limited until at least 2030 due to delays in aircraft production from major manufacturers and ongoing challenges in the aviation sector.

With the combination of industry capacity constraints, an expanding cost advantage, a strong financial position, and a low-cost aircraft order book, Ryanair aims for controlled profitable growth to reach 300 million passengers annually by fiscal year 2034.

How do you think Ryanair will adapt to the evolving aviation landscape in the coming years?