Ryanair Q1 profit falls 34% as higher fuel costs and lower fares weigh on earnings

Ryanair reported a 34 per cent year-on-year decline in first-quarter profit after tax to €538 million, as higher unhedged fuel costs and lower average fares offset continued passenger growth.

For the quarter ended 30th June 2026, the airline carried 61.3 million passengers, up 6 per cent from 57.9 million a year earlier, while its load factor remained unchanged at 94 per cent.

Group revenue increased by 1 per cent to €4.38 billion. However, operating costs rose by 11 per cent to €3.81 billion, reflecting a sharp increase in the cost of the airline's 20 per cent unhedged jet fuel, as well as higher staff and maintenance costs.

Scheduled revenue fell 1 per cent to €2.91 billion as average fares declined by 6 per cent, while ancillary revenue remained in line with passenger growth at €1.47 billion.

Ryanair attributed weaker pricing to the impact of the conflict in the Middle East, which it said led to consumer hesitancy, concerns over potential jet fuel shortages, economic uncertainty and shorter booking windows.

During the quarter, the airline opened three new bases in Rabat, Tirana and Trapani, while launching 130 new summer 2026 routes.

The group also completed repayment of its final €1.2 billion bond in May, leaving it debt free. As at 30th June, Ryanair held gross cash of more than €2.8 billion after repaying €1.3 billion in debt and investing €500 million in capital expenditure.

Its fleet now stands at 647 aircraft, including all 210 Boeing 737-8200 "Gamechanger" aircraft. Ryanair expects to grow passenger traffic by 4 per cent to 216 million during the 2027 financial year, with Boeing still targeting certification of the MAX-10 aircraft in late summer 2026 and the first deliveries expected in spring 2027.

Looking ahead, the airline said demand for summer travel remains strong, although booking windows remain shorter than last year. It noted that second-quarter fares are currently trending modestly lower year on year and said it is too early to provide profit guidance for the full financial year due to limited visibility over the second half.

Ryanair added that its financial performance remains sensitive to external factors, including developments in the Middle East and Ukraine, fuel prices, macroeconomic conditions, and ongoing air traffic control disruptions across Europe.