LONDON (dpa-AFX) - Irish low-cost airline Ryanair Holdings Plc. (RYA.L, RYAAY) reported Monday lower profit in its second quarter on lower fares and higher fuel costs, despite higher revenues on growth in passenger traffic.
Looking ahead, the company said it remains too early to provide meaningful profit guidance for fiscal 2027. For the new year, traffic is expected to grow 3 percent to 214 million.
Further, the company announced another €800 million share buyback, starting in February 2027, which is expected to run for around 10 months.
The Company has declared a €0.273 interim dividend per share payable in late February 2027
The airline's second-quarter profit attributable to equity holders of the parent company declined 6 percent to €1.61 billion from €1.72 billion in the prior year quarter.
Earnings per share decreased 4 percent to €1.5392 from €1.6086 a year ago.
Operating profit fell 7 percent to €1.82 billion from €1.95 billion in the prior year quarter.
Total operating revenues, however, increased 4 percent to €5.70 billion from €5.48 billion a year ago. Scheduled revenues rose 3 percent to €4.09 billion, while ancillary revenues climbed 6 percent to €1.61 billion.
In the quarter, passenger numbers totaled 64.5 million, 5 percent higher than 61.2 million a year ago. Load factor remained stable at 96 percent in both periods. Average fare decreased 2 percent to €63.40 from €64.80 last year.
Regarding the outlook, the company noted that while Q3 demand is strong, with fares trending modestly ahead of the same quarter last year, the booking window remains closer-in which reduces visibility, the firm added.
Regarding fiscal 2028 fuel costs, the company said it expects jet-fuel prices to remain elevated well into 2027, unless there is a swift resolution of the Middle East conflict.
As low cost oil hedges roll off ahead of S.27, all EU airlines face a significantly higher fuel bill next year.
In order to meet the fuel bill, the company said it is 'reviewing all costs across Group airlines with a particular focus on airport churn negotiations, maturing labour agreements (which may require temporary pay freezes), lower crewing ratios and increased use of AI to drive further operational and back-office/support functions productivity.'
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