Ryanair Holdings plc ( RYAOF ) stock is trading higher after it reported its third-quarter 2025 results.

RYAAY reported revenue growth of 10% year-over-year to 2.96 billion euros ($3.158 billion, beating the $2.937 billion estimate).

Quarterly earnings of $0.30 per ADS beat the analyst consensus estimate of $0.08.

Scheduled revenues gained 10% YoY to 1.92 billion euros as traffic increase drove revenue increase and higher average fares (+1%), boosted by strong holiday bookings and easier prior-year comparisons despite Boeing delays.

Ancillary revenues grew 10% to 1.04 billion euros for the quarter, and operating costs increased by 8% to 2.93 billion euros.

For the fourth quarter, ~85% of fuel is hedged at $80/bbl, and over 75% of FY26 fuel is hedged at $77/bbl, mitigating the exposure to fuel price fluctuations.

Ryanair’s balance sheet includes 2.77 billion euros in cash, and the B737 fleet (582 aircraft) is fully unencumbered, which widens cost advantage over competitor airlines. Net cash inflow from operating activities for the nine months ended December 31 stood at 1.095 billion euros, down from 1.285 billion euros a year ago.

As of December 31, Ryanair’s fleet included 172 B737-8200 “Gamechangers” out of 609 aircraft. Boeing delays have forced the company to revise the FY26 traffic growth forecast to 206 million passengers (3% growth) from 210 million.

Ryanair ( RYAOF ) expects the remaining 29 Gamechangers in its order book by March 2026 and anticipates receiving 15 MAX-10s, pending certification, in Spring 2027.

The company stated that its 800 million euro buyback program is on track for mid-2025, with an interim dividend of 0.223 euro per share set for February.

Ryanair ( RYAOF ) expects European short-haul capacity to remain tight in 2025 due to engine repairs, delivery delays, and airline consolidation. However, its cost advantage, strong balance sheet, and fleet expansion position it to reach 300 million passengers over the next decade.

2025 Outlook: The company stated that FY25 traffic is expected to reach nearly 200 million passengers (+9%), contingent on no further Boeing delivery delays.

Unit costs remain stable, with fuel hedge savings and interest income offsetting cost inflation from crew pay, handling fees, and Boeing delays.

RYAAY expects FY25 PAT to be between 1.55 billion euros and 1.61 billion euros, depending on external factors like geopolitical conflicts, ATC issues, and Boeing deliveries.

Price Action: RYAAY shares are trading higher by 2.56% at $47.32 premarket at the last check Monday.

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