Ryanair Reports 18% Profit Decline Amid Traffic Growth

Ryanair ( (RYAAY) ) has released its Q2 earnings. Here is a breakdown of the information Ryanair presented to its investors.

Ryanair Holdings plc, a major player in the European airline industry, connects over 234 airports across 37 countries, offering low-cost air travel services with an impressive operational safety record. In its recent earnings report, Ryanair announced a decline in after-tax profit for the first half of the fiscal year, falling 18% to €1.79 billion, compared to €2.18 billion the previous year. This reduction comes despite a 9% increase in passenger traffic to 115 million, primarily due to a 10% drop in average fares. The company managed to increase its revenue slightly by 1% to €8.69 billion, although operating costs rose by 8% to €6.68 billion. A significant highlight includes the expansion of Ryanair’s fleet with 170 B737 Gamechanger aircraft and the opening of five new bases along with 200 new routes. The airline continues to leverage its cost advantages and strategic route expansions, expecting to grow passenger numbers to 210 million by FY26, albeit slightly moderated due to Boeing delivery delays. Ryanair remains optimistic about the future, aiming to increase its passenger traffic to 300 million annually by FY34, while continuing to address capacity constraints and operational challenges.