Ryanair ( (RYAAY) ) has released its Q1 earnings. Here is a breakdown of the information Ryanair presented to its investors.
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Ryanair Holdings plc, Europe’s largest airline group, operates a fleet of nearly 620 aircraft, connecting 233 airports in 37 countries. The company is known for its low-cost business model and aims to grow its traffic to 300 million passengers annually by FY34.
Ryanair reported a significant increase in its Q1 profit after tax, reaching €820 million, up from €360 million the previous year. This growth was supported by a 4% increase in passenger traffic and a 21% rise in average fares, benefiting from a strong Easter period and modest growth.
Key financial metrics for Q1 include a 20% increase in total revenue to €4.34 billion, with scheduled revenue up by 26% and ancillary revenue rising by 7%. Operating costs increased by 5%, but Ryanair’s competitive fuel hedging strategy provided a significant advantage. The company also highlighted its strong balance sheet, with a BBB+ credit rating and substantial cash reserves, positioning it well against competitors.
Ryanair continues to expand its fleet with the addition of new Boeing 737 aircraft, supporting its growth strategy. The company plans to operate over 2,600 routes this summer and anticipates strong travel demand. Despite industry capacity constraints, Ryanair is confident in its ability to achieve controlled profitable growth.
Looking ahead, Ryanair expects a 3% increase in FY26 traffic to 206 million passengers, despite delays in aircraft deliveries. The company remains cautious about potential external risks but anticipates recovering from previous fare declines, leading to reasonable net profit growth in FY26.