Ryanair recorded another growth quarter significant, with profits beyond expectations and a traffic in increase. However, i delays in the delivery of new Boeings are forcing Europe's largest low-cost carrier to scale back (once again) his Forecasts for the next fiscal year.
In Dublin, the title Ryanair flies with a gain of almost 5%.
Ryanair: quarterly profits of 149 million euros, traffic growth
In the third quarter of the fiscal year 2025, ended in December, the Irish low-cost airline recorded a net profit of 149 million euros, a significant leap compared to the 15 million of the same period last year and well above the 60 million estimated by analysts. Even the revenues grew by 10%, reaching 2,96 billion euros, supported by theincrease in tariffs averages of 1% and from a traffic growing by 9% to 44,9 million passengers. This allowed Ryanair to reverse the trend of the previous quarter, where rates had dropped by 7%.
According to the CFO Neil Sorahan, the result was positively influenced by two factors: on the one hand, compensation for delays in deliveries; on the other, a negative impact of 108 million euros related to legal fees in Spain, against which the Irish giant has announced an appeal.
Boeing Delays, Forecasts Downgraded
Despite the positive results, Ryanair has revised for second time in three months le passenger traffic forecast for the fiscal year 2026The airline now expects to carry 206 million passengers, up from 210 million expected in November and an initial estimate of 215 million.
This adjustment is related to the delays in aircraft delivery by Boeing, caused by last year's strike. Ryanair expects to receive only nine Boeing 737 Max aircraft before the peak summer season, fewer than originally planned. However, the company remains confident that the 29 aircraft on order will be delivered by March 2026.
“We are disappointed to have fewer airplanes than expected, but we have seen significant improvements at Boeing’s factories. The worst is probably behind us,” Sorahan said.
Costs under control and future challenges
I operating costs remained in line with expectations, thanks to savings from fuel hedging and interest income, which largely offset inflation. The low-cost airline expects a annual profit between 1,55 and 1,61 billion of euros, slightly above the market consensus of 1,53 billion.
However, uncertainties remain related to geopolitical factors, such as the conflicts in Ukraine e Middle East, and structural problems, such as the lack of staff air traffic control officer in Europe. For the 2025 fiscal year, Ryanair aims to reach traffic of almost 200 million passengers (+9%) provided there are no further delays in Boeing deliveries.
The market remains optimistic
Despite the cuts to the forecasts, the analyst remain confident on Ryanair's long-term prospects. Citi confirmed the “buy” rating with a target price of 26 euros, while Amber maintains a target of 23 euros, equal to a potential increase of 16,5% compared to the last closing of the stock at 19,73 euros. According to Citi, the increase in fares and the exit of Ryanair from OTA distribution in 2026 could guarantee further growth margins.
