Photo: Shutterstock Low-cost carrier Ryanair has reported a sharp increase in annual profit and a record number of carried passengers during its 2025/26 financial year. The impressive results come despite delivery delays and mounting uncertainty linked to the conflict in the Middle East.
The Irish company said profit after tax before exceptional items climbed 40% to €2.26 billion, up from €1.61 billion a year earlier. Passenger traffic increased 4% to 208.4 million travelers, despite 29 delayed Boeing 737 MAX aircraft deliveries that affected planned growth.
Ryanair. Photo: ShutterstockGroup revenue rose 11% to €15.54 billion, helped by stronger ticket prices and continued demand for travel across Europe. Scheduled revenue increased 14% to €10.56 billion, while ancillary revenue, including baggage and seat selection fees, reached €4.99 billion.
Ryanair Group CEO Michael O'Leary said fares recovered strongly after last year’s decline.
“Traffic grew 4% with 10% higher fares recovering last year’s 7% fare decline,” O’Leary explained.
The airline also confirmed that all 210 Boeing 737 “Gamechanger” aircraft ordered so far have now been delivered. The newer aircraft are designed to reduce fuel burn and emissions while carrying more passengers.
However, Ryanair warned that fuel prices remain a major concern. The company said the ongoing conflict in the Middle East and uncertainty surrounding the Strait of Hormuz have pushed global jet fuel prices above $150 per barrel in recent weeks.
Despite the volatility, Ryanair said its aggressive fuel hedging strategy should help protect earnings. Around 80% of the airline’s fuel needs for FY27 are already hedged at approximately $67 per barrel.
“The conflict in the Middle East has created economic uncertainty,” O’Leary said, while noting that Europe remains relatively well supplied with jet fuel.
The carrier finished the financial year with a strong balance sheet, including €3.6 billion in gross cash and net cash of €2.1 billion. Ryanair also announced a final dividend of €0.195 per share, subject to shareholder approval.
Looking ahead, the airline expects passenger traffic to grow another 4% to approximately 216 million passengers in FY27.
Ryanair plans to expand further in lower tax markets such as Albania, Italy, Morocco, Slovakia and Sweden, while reducing capacity in higher tax countries including Germany, Belgium and Austria.
O’Leary, who also said discussions are underway to extend his contract as CEO until 2032, added that "As always, Ryanair will pursue its “load-active/yield passive” strategy to drive traffic growth, ancillary revenue and lower unit costs."