Ryanair Holdings plc Q1 FY2026 earnings call

• Strong Q1 profit after tax: rose to EUR 820 million compared to prior year Q1 PAT of EUR 360 million. • Traffic grew 4% to 58 million passengers, with revenue per passenger up 15%. • Ancillary revenues up 3% on 4% traffic growth. • Unit cost inflation was 1%. • Took delivery of 5 Gamechangers in Q1, bringing total Gamechanger fleet to 181 aircraft. • Bought 30 spare LEAP-1B engines from CFM with a negotiated discount. • Ryanair expected to be added to FTSE Russell in September. • Jet fuel hedging largely offset ATC fees increase and higher environmental costs.

In Q1, traffic grew 4% to 58 million passengers. Revenue per passenger rose 15%, with average fares up 21% in the quarter. Ancillary revenues were up 3% on top of 4% traffic growth. Unit cost inflation was just 1%. Traffic growth was constrained by Boeing's delivery delays. The cost gap between Ryanair and other EU competitors widened during Q1.

• FY '26 traffic expected to grow 3% to 206 million passengers due to Boeing delivery delays. • Modest unit cost inflation expected in FY '26 as Gamechanger deliveries, fuel hedging, and cost control offset ATC charges and environmental costs. • Q2 fares expected to recover almost all of last year's 7% decline. • H2 outcome dependent on strength of close-in bookings for July, August, and September; no full year PAT guidance yet but expect net profit growth in FY '26.

• Risks include terrorism, tariff wars, macroeconomic shocks (e.g., Middle East/Ukraine conflict). • European ATD strikes, mismanagement, and short staffing bedevil operations.

Q: How do you think the tariff thing will play out?

A: Nobody knows, but speculation is Trump may delay tariffs or EU may look at reciprocal tariffs. Boeing is liable for tariffs, not Ryanair, and possible delays or taking deliveries through UK register.

Q: What is needed for you to look at locking in the attractive dollar rate on future aircraft deliveries?

A: Need hedge accounting to avoid P&L volatility. Dollar has moved, and we want to hedge but won't without hedge accounting.

Q: On cabin bags, where do you think it'll get to?

A: Parliament's suggestion may not prevail as it infringes EU rules. Commission's proposal to define free carry-on bag is better, and Ryanair's current policy works.

Q: Is the stronger close-in pricing in Q1 continuing into Q2?

A: Seeing stronger close-in pricing, load factors 1% ahead of last year, but cautious as Q2 is more normal compared to Q1's artificial boost.

Q: How to think about longer-term unit cost?

A: Modest unit cost inflation expected, but gap with competitors will widen. Gamechanger deliveries and engine shops will help.

Q: Thoughts on Wizz Air?

A: Wizz is a high-cost competitor, not a true low-cost rival. Wizz has struggled in competition with Ryanair and may not operate independently in Europe long term.

Q: On environmental costs and demand?

A: Demand strong enough to absorb costs, and competition's cost increases will offset some, with Ryanair's cost advantage continuing.