Ryanair reports strong growth in profits and revenues in the 2025-26 financial year but the near future is weighed down by uncertainty linked to potential "unfavorable external developments”, namely the wars in Iran and the Middle East which impact the price of oil and, consequently, the cost of fuel.
Ryanair: profits increase by 35%
Ryanair closed the 2025-25 financial year with a net profit of 2,173 billion euros, up 35% compared to a year ago. Operating profit soars positive, up 52% to 2,374 billion on revenues up 11% to 15,54 billion. The passengers transported increased by 4% to 208,4 million.
Ryanair: From fuel to strikes, the risks for the future
“The final results for the 2027 financial year remain highly exposed to adverse external developments, including the escalation of conflicts in the Middle East and Ukraine” and “the risks of deficiencies in'fuel supply'. On fuel, the group reports that if approximately 80% of the jet fuel needed for the 2027 financial year is covered at 67 dollars per barrel (therefore a lower price than the previous year), the remaining 20% is not covered and therefore subject to "persistent high prices." Other factors of uncertainty include strikes and poor traffic management in Europe.
"We hope to be able to provide shareholders with a clearer picture of fuel prices and costs in the first half of the year when we present our first quarter results, scheduled for the end of July," the statement reads. In terms of passenger traffic, Ryanair estimates +4% for 2026-27 with 216 million people transported.
Rates falling, but high volatility
For the first quarter of the current financial year, which began in April, Ryanair expects rates lower by 5% compared to those of last year, while on the prices of the second quarter there is "limited" visibility, but the trend appears stable.
“With zero visibility for the second half and significant volatility in fuel prices and potential supply, it is too early to provide a meaningful fiscal 2027 earnings guidance at this time,” the company wrote.
O'Leary's contract is set to extend until 2032
Negotiations between Ryanair's board of directors and the CEO Michael O'Leary for extend until April 2032 The manager's contract, which expires in 2028, "is almost complete." The Irish company announced this, emphasizing that the consultation phase with the group's main institutional shareholders will begin "in the coming days." Under the proposed new contract, O'Leary will have an option to purchase 10 million Ryanair shares at the market price, prior to the recent decline linked to the Iran war. However, this option can only be exercised upon achieving "very ambitious" net profit or share price growth targets.
