Ryanair Holdings plc ( RYAOF ) shares rose after the company reported second-quarter earnings per share of $3.76, beating analyst expectations of $3.62, while revenue of $6.41 billion missed estimates of $6.42 billion.

Second-quarter net profit rose 20% to 1.72 billion euros (~$2.02 billion) from 1.43 billion euros a year earlier.

For the first half of fiscal 2026, profit increased 42% to 2.54 billion euros, as traffic rose 3% to 119 million passengers and average fares climbed 13% amid strong Easter travel and fare recovery.

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First-half revenue rose 13% to 9.82 billion euros. Scheduled revenue grew 16% to 6.91 billion euros, while ancillary revenue increased 6% to 2.91 billion euros.

Operating costs rose 4% to 6.96 billion euros (+1% per passenger), as higher air traffic control and environmental expenses were partly offset by favorable fuel hedges.

Ryanair ( RYAOF ) said that about 85% of its second-half fiscal 2026 fuel needs are hedged at $76 per barrel, and 80% of its fiscal 2027 fuel at just under $67 per barrel.

The airline ended the quarter with 3 billion euros in gross cash after 1.2 billion euros in debt repayments, 1.1 billion euros in capital expenditures, and 400 million euros in shareholder distributions. Net cash rose to 1.5 billion euros from 1.3 billion euros at March 31.

Ryanair ( RYAOF ) launched a 750 million euro share buyback in May, repurchasing 25% of the program for 188 million euros, and declared an interim dividend of 0.193 euros per share payable in February 2026.

Fleet Modernization and Capacity Plans

Ryanair ( RYAOF ) operated 636 aircraft as of September 30, including 199 Boeing 737 "Gamechangers," and had 204 by the end of October. The airline expects to receive the remaining six Gamechangers before summer 2026, supporting 4% traffic growth to 215 million passengers next year.

Deliveries of 15 Boeing MAX-10s are scheduled for spring 2027 as part of a 300-aircraft order through March 2034.

Strategic Network Reallocation

The company is reallocating capacity to lower-cost regions such as Sweden, Slovakia, Italy, Albania, and Morocco while reducing exposure to higher-cost markets, including Germany, Austria, and regional Spain. Over 2,500 routes are on sale for summer 2026, with new bases in Tirana and Trapani.

During the first half, Ryanair ( RYAOF ) took delivery of 23 new Gamechanger aircraft and retrofitted about 60% of its Boeing 737NG fleet with winglets to improve efficiency. It also committed $500 million to purchase 30 CFM LEAP-1B spare engines, with more than half of them delivered by September 30.

Outlook

Looking ahead, Ryanair ( RYAOF ) expects fiscal 2026 traffic to grow by more than 3% to 207 million passengers. The airline forecasts modest unit cost inflation for the year, driven by the introduction of new aircraft and effective cost control.

"It remains too early to provide meaningful FY26 PAT guidance. We do, however, cautiously expect to recover all of last year's 7% full-year fare decline, which should lead to reasonable net profit growth in FY26," said Group CEO Michael O'Leary.

The company stated that its results remain subject to risks, including geopolitical tensions, macroeconomic shocks, and European air traffic control strikes.

Price Action: RYAAY shares were trading higher by 3.44% to $64.63 premarket at last check Monday.

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