Ryanair (RYA) Q1 2027 earnings summary

Executive summary

• Q1 profit after tax fell 34% year-over-year to €538 million, mainly due to higher unhedged jet fuel costs and a 6% drop in average fares, despite 6% traffic growth to 61.3 million passengers.

• Revenue rose 1% to €4.38 billion, with ancillary revenue up 5% and scheduled revenue down 1% as fares required stimulation amid geopolitical and economic uncertainty.

• The group is now debt-free after repaying its final €1.2 billion bond, maintaining strong liquidity with €2.8 billion gross cash and €2.7 billion net cash.

• Opened three new bases in Rabat, Tirana, and Trapani, launching over 130 new routes.

• Maintains industry-leading cost position and plans to grow to 800 aircraft and 300 million passengers annually by FY34.

Financial highlights

• Q1 FY27 revenue rose 1% year-over-year to €4.38 billion, while total costs increased 11% to €3.81 billion.

• Average fare declined 6% to €48; load factor remained stable at 94%.

• Operating profit dropped 37% year-over-year to €575 million; EPS fell to €0.52 from €0.77.

• Gross margin compressed as unit costs rose 5% and fuel and oil expenses surged 16% to €1.69 billion.

• Share buybacks totaled €0.2 billion for 6.1 million shares in Q1, with further repurchases post-quarter.

Outlook and guidance

• FY27 traffic expected to grow 4% to 216 million passengers, with H1 up 6% and H2 up 2%.

• Jet fuel is 80% hedged for FY27 at $67/bbl, and 15% hedged for FY28 at $85/bbl.

• Q2 pricing is trending modestly down year-over-year; H2 visibility remains low, and no meaningful FY27 PAT guidance is provided.

• Pricing expected to remain soft in H2, with potential for recovery if competitors cut capacity.

• Final FY27 PAT remains highly sensitive to external risks, including geopolitical conflicts, fuel prices, and macroeconomic shocks.