Ryanair FY25 Profit Down, But Stock Climbs On Revenue And Traffic Growth, Positive Outlook

Ryanair Holdings

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(RTTNews) - Shares of Ryanair Holdings Plc. were gaining around 6 percent in the early morning trading on the Nasdaq after the Irish low-cost airline reported Monday higher revenues and traffic in fiscal 2025, despite delivery delays from aerospace major Boeing Co. The company marked as the first airline in European Union to carry 200 million guests in one year. Meanwhile, Ryanair recorded weak annual profit.

Ryanair Group CEO Michael O'Leary, said, "We expect FY26 traffic to grow by just 3 percent to 206m passengers due to constrained/delayed Boeing deliveries.... With limited visibility, we currently expect Q2 pricing to recover some of the 7 percent decline we experienced in PY Q2... While we cautiously expect to recover most, but not all of last years 7 percent fare decline, which should lead to reasonable net profit growth in FY26, it is far too early to provide any meaningful guidance."

The company added that the final fiscal 2026 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East and European ATC mismanagement/short staffing.

Ryanair said it is working closely with Boeing to accelerate deliveries and are increasingly confident that the remaining 29 Gamechangers in its 210 orderbook will deliver well ahead of S.26, enabling it to catch up delayed traffic growth into FY27.

European short-haul capacity is projected to remain constrained for the next few years as many of Europe's Airbus operators are still working through Pratt & Whitney engine repairs, the big 2 OEMs are well behind on aircraft deliveries, and EU airline consolidation continues.

"These capacity constraints, combined with our substantial cost advantage, strong balance sheet, low-cost aircraft orders and industry leading operational resilience will, we believe, facilitate Ryanair's controlled profitable growth to 300m passengers p.a. by FY34," the firm noted.

In fiscal 2025, profit attributable to equity holders of parent declined about 16 percent to 1.612 billion euros from last year's 1.917 billion euros. Earnings per share decreased to 1.4549 euros from 1.6743 euros in the previous year.

Annual profit before tax was 1.784 billion euros, down 16 percent from 2.128 billion euros in the prior year.

Annual total operating revenues, however, rose about 4 percent to 13.949 billion euros from 13.444 billion euros in the previous year.

Scheduled revenues grew 1 percent year-over-year to 9.23 billion euros as a 7 percent decline in fares drove strong traffic growth of 9 percent to just over 200 million passengers.

Ancillary revenues rose 10 percent year-over-year to 4.72 billion euros due to 9 percent traffic growth and 1 percent higher spend per passenger.

On the Nasdaq, Ryanair shares were trading at $53.21, up 6.42 percent.

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