Ryanair (RYA) Q4 2025 earnings summary

Executive summary

• Reported full year profit after tax of €1.61 billion, down from €1.92 billion year-over-year, due to a 7% decline in airfares, offset by record traffic growth of 9% to 200.2 million passengers and a 10% increase in ancillary revenues.

• Unit cost per passenger remained flat, widening the cost gap versus competitors and supporting future growth ambitions.

• Growth constrained by Boeing delivery delays, limiting FY 2026 traffic growth to 3% (206 million passengers), with a recovery to 215 million expected in FY 2027.

• Share buybacks continued, with 7% of shares repurchased and cancelled last year and a new €750 million buyback announced.

• Strong ESG ratings and customer satisfaction (CSAT 86%).

Financial highlights

• Total revenue rose 4% to €13.95 billion, but profit after tax fell 16% to €1.61 billion due to higher costs.

• Gross cash at year-end was €4 billion, with net cash of €1.3 billion, aided by delayed aircraft deliveries.

• CapEx for the year was €1.6 billion, with €1.9 billion returned to shareholders, including a €1.5 billion buyback.

• Ancillary revenue per passenger grew 1%, with total ancillary revenue up 10% year-over-year.

• Total costs increased 9% to €12.39 billion, outpacing revenue growth.

Outlook and guidance

• FY 2026 traffic growth limited to 3% due to Boeing delays, with a return to higher growth in FY 2027 as deliveries resume.

• Modest unit cost inflation of 1%-2% expected in FY 2026, with strong hedging and cost control offsetting higher route, ATC, and environmental costs.

• Q1 fares up 14%-15% year-over-year, Q2 fares expected up 4%-5%, but full-year guidance withheld due to low H2 visibility and dependence on close-in bookings.

• Fuel hedged at $76/barrel for FY 2026 (85% hedged), with 40% of FY 2027 hedged at $66/barrel, providing potential for material savings.

• Strong demand anticipated for Summer 2025; Q1 benefits from Easter and weak prior year comparison.