Ryanair Holdings has reported a 15% decline in first-half profit for its 2026/27 financial year, as sharply higher jet fuel costs and lower airfares offset continued passenger growth. The Irish low-cost airline group recorded a profit after tax of €2.15 billion for the six months ending 30 September 2026, compared with €2.54 billion during the same period a year earlier.
Passenger numbers increased by 6% to 125.8 million, while the average fare fell by 4% to €55.70. The load factor remained unchanged at 95%. Total revenue rose by 3% to €10.08 billion, but operating costs increased by 10% to €7.69 billion, putting pressure on profitability.
Ryanair attributed much of the increase in costs to jet fuel prices. Approximately 20% of its fuel requirements remained unhedged, with prices for this portion doubling to around $130 per barrel. Ancillary revenue increased by 6% to €3.08 billion, helping to offset some of the pressure from lower ticket prices.
CEO Michael O’Leary said the airline’s fuel hedging strategy continued to provide a competitive advantage. Ryanair has secured 80% of its fuel requirements for the current financial year at approximately $67 per barrel, while 25% of its requirements for the 2027/28 financial year are already hedged at around $95 per barrel.
Winter capacity cuts and further expansion
Ryanair has reduced its passenger growth target for the current financial year from 216 million to 214 million, citing higher fuel costs. As a result, traffic between November and March is expected to remain broadly flat compared with the previous winter.
The airline nevertheless plans further expansion in summer 2027, targeting more than 220 million passengers, representing growth of approximately 3%. This expansion will be supported by the expected delivery of its first 16 Boeing 737 MAX 10 aircraft in spring 2027, following anticipated EASA certification before the end of 2026.
Ryanair also announced that 126 additional routes and a new base in Rimini, Italy, are on sale for summer 2027. The airline intends to prioritise countries and airports that reduce aviation taxes and airport charges, while shifting capacity away from markets it considers increasingly expensive, including Austria, Germany and regional Spain.
The group expects to grow to more than 300 million passengers annually by financial year 2034, supported by new aircraft, its cost advantage and continued consolidation in the European airline industry.
Higher fares expected as fuel costs increase
Looking ahead, Ryanair warned that higher fuel prices could put further pressure on the European airline industry during the 2027/28 financial year. The company estimates that its annual fuel bill could increase by approximately €2 billion based on current forward prices, even after accounting for its existing hedging arrangements.
O’Leary expects European short-haul airfares to rise materially next year as airlines pass on higher fuel costs and industry capacity remains constrained. However, he cautioned that higher fares may not fully compensate for the increase in fuel expenditure.
The airline is consequently reviewing costs across its operations, including airport agreements, labour contracts, crew ratios and the use of artificial intelligence to improve productivity. O’Leary also indicated that temporary pay freezes could be considered when existing labour agreements mature.
Despite the lower first-half profit, Ryanair remains financially strong. At the end of September, the group reported gross cash of €2.6 billion and had completed a €750 million share buyback programme. A further €800 million buyback is planned from February 2027, alongside an interim dividend of €0.273 per share, payable in late February.
Ryanair said it was too early to provide meaningful full-year profit guidance, citing uncertainty surrounding fuel prices, geopolitical developments and European air traffic control disruptions.