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Ryanair reported a record profit after tax of €2.26 billion for the year up to March 2026, representing a 40% rise from the previous fiscal year, while warning that volatility in oil prices and geopolitical risks remain key concerns for the airline industry.
Passenger numbers rose 4% to 208.4 million during its 2025-26 period, despite continued delays with Boeing aircraft deliveries which constrained capacity growth.
Revenue per passenger also increased 7%, driven by 10% higher fares, while operating costs only rose 6%, keeping unit cost growth at 1%. Total revenue increased 11% to €15.54 billion.
CEO Michael O’Leary said Ryanair’s fuel hedging strategy has reduced the immediate impact of the recent spike in oil prices caused by the Iran war and concerns over shipping routes in the Gulf.
Ryanair said it has hedged approximately 80% of its fuel requirements for the current fiscal year at around $67 per barrel through to April 2027.
Middle East tensions cloud airline outlook
The carrier cautioned that instability in the Middle East continues to create uncertainty for airlines and energy markets globally.
In its earnings release, Ryanair said the industry remains exposed to potential disruption if tensions escalate further around the Strait of Hormuz, a key global oil transit route.
However, the company believes it is uniquely positioned to take advantage of the potential collapse of other European airlines.
“I think prices will remain higher for longer, which puts Ryanair in a particularly strong position, given our strong fuel hedging,” CFO Neil Sorahan stated in an interview with CNBC on Monday.
In a previous interview with CNBC in April, Ryanair’s CEO had also confidently declared that the company would be able to profit from the disruption to other airlines.
“I think there will be failures. If it continues at $150 a barrel into July, August and September, then you’ll see European airlines fail and that, in the medium term, would probably be good for Ryanair’s business,” O’Leary said at the time.
The airline declined to issue detailed profit guidance for the 2026-27 fiscal year, citing limited visibility over future fares, consumer demand and fuel costs.
Ryanair said summer bookings remain robust overall, although customers are continuing to book flights closer to departure dates amid broader economic uncertainty.
Boeing delivery delays remain a constraint
Ryanair stated that delays affecting Boeing aircraft deliveries continued to restrict expansion opportunities across Europe’s short-haul aviation market.
The airline expects traffic to increase to approximately 216 million passengers this year as additional Boeing 737 MAX aircraft gradually enter service.
O’Leary also warned that aircraft shortages and supply chain constraints affecting the wider aviation sector are likely to persist for several years, limiting industry capacity growth across Europe.
Ryanair argued that tighter market capacity should continue to support fares, particularly for low-cost carriers with scale advantages and strong balance sheets.
The company also confirmed that discussions are progressing over an extension to O’Leary’s contract, which could keep him as CEO until 2032.