Ryanair Q2: Revenue Climbs, Traffic Surges, But Boeing Delays And Cost Pressures Weigh On Results

Ryanair Holdings plc RYAAY reported second-quarter revenue growth of 3% YoY to €5.07 billion ($5.57 billion, beating the $5.55 billion estimate). Scheduled revenues gained 1% YoY to €3.62 billion, with a 7% decrease in average fares to 61 euros.

Traffic rose 9% to 115 million despite Boeing delays, while ancillary revenues grew 10% to 2.74 billion euros for the six months ended September 30.

Ryanair’s second-quarter EPS stood at 1.285 euros, down from 1.3239 euros a year ago. Operating costs increased 6% year over year to 3.42 billion euros. Net cash inflow from operating activities for the half-year period stood at 1.181 billion euros, down from 1.64 billion euros a year ago.

As of September 30, gross cash exceeded 3.3 billion euros and net cash stood at 0.6 billion euros, with 170x B737 “Gamechangers” in 608 fleet.

The company’s fuel needs in the second half of FY25 are 85% hedged at $79/bbl, providing risk protection amid recent price volatility. For FY26, hedging coverage has increased to 75% at $77/bbl, securing modest year-on-year savings.

“Many customers are switching to Ryanair for our lower air fares. As a result, we are capturing record share gains across most markets. Traffic, despite repeated Boeing delivery delays, grew 9% to 115m while ancillary revenues were resilient, rising 10% to €2.74bn. Operating costs performed well, rising 8% (lagging behind 9% traffic growth) to €6.68bn, as fuel hedge savings offset higher staff and other costs due, in part, to Boeing delivery delays. While modest delay compensation was received in H1 (mainly maintenance credits) this does not offset the substantial impact of a 5m+ passenger shortfall in FY25 due to these delivery delays,” commented Ryanair Group CEO Michael O’Leary.

Outlook: Ryanair continues to target to reach 198 million and 200 million passengers in FY25, reflecting an 8% increase, but this goal depends on Boeing deliveries staying on schedule.

Full-year unit costs are expected to remain stable as savings from fuel hedges, interest income, and minor compensation for aircraft delays are set to counteract inflationary pressures, including crew wages, handling fees, and air traffic control costs.

Strong demand is projected for the third quarter, with pricing declines moderating, though fare expectations remain cautious. Limited fourth-quarter visibility and challenging comparisons with last year’s early Easter make it difficult to provide precise FY25 profit guidance.

Price Action: RYAAY shares are trading higher by 0.66% at $45.84 premarket at the last check Monday.

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