Ryanair’s half-year profit after tax dropped 15 per cent to 2.15 billion euros despite a 6 per cent increase in passengers. Lower fares and a faster rise in expenses squeezed earnings as unhedged fuel became more expensive. The airline withheld a meaningful annual profit forecast because visibility into its final quarter was insufficient.
Airline Ryanair earned 2.15 billion euros after tax in the first half of its financial year, down from 2.54 billion euros in the corresponding period. The 15 per cent decline came despite passenger growth of 6 per cent to 125.8 million. Average fares fell 4 per cent to 55.70 euros. Revenue increased 3 per cent to 10.08 billion euros, while operating expenses rose 10 per cent to 7.69 billion euros.[1], [2]
Management attributed much of the cost increase to fuel. It said the barrel price for the unhedged 20 per cent of fuel consumption doubled to about 130 dollars. The airline has fixed prices for 80 per cent of its fuel needs through March 2027 at roughly 67 dollars a barrel. For the following financial year, 25 per cent is covered at about 95 dollars. Revenue per passenger fell 3 per cent in the first half, while unit costs rose 5 per cent.[1]
Ryanair declined to give a meaningful full-year profit forecast because it lacked visibility into its final quarter. Gross cash stood at 2.6 billion euros at the half-year end after debt repayments of 1.3 billion euros, capital spending of 800 million euros and shareholder distributions of 400 million euros. Its 1.1 billion euro revolving credit facility had 700 million euros undrawn. The company completed a 750 million euro share buyback and cancelled 28.6 million shares during the period.[1]
