Ryanair Holdings (LSE:0A2U) shares dropped more than 3% on Monday after the low-cost carrier declined to provide profit guidance for fiscal 2027, despite reporting a record pre-exceptional profit after tax of €2.26 billion for the year ended March 31, compared with €1.61 billion a year earlier.
Airline withholds FY27 outlook amid uncertainty
The Dublin-based airline said it was unable to issue a full-year forecast due to ongoing Middle East tensions, fuel price volatility and limited visibility on future bookings.
“With zero H2 visibility and significant fuel price/potential supply volatility it is far too early to provide any meaningful FY27 profit guidance at this time,” Chief Executive Michael O’Leary said in a statement.
Full-year revenue increased 11% to €15.54 billion as passenger numbers rose 4% to 208.4 million. Scheduled revenue climbed 14% to €10.56 billion, with average fares increasing 10% to around €51 per passenger. Ancillary revenue grew 6% to €4.99 billion, equivalent to €24 per passenger.
Operating costs before exceptional items rose 6% to €13.09 billion, while unit costs increased 1%. Reported profit after tax came in at €2.17 billion after including an €85 million provision linked to a €256 million fine imposed by Italy’s AGCM in December 2025, which Ryanair is currently appealing.
Quarterly figures beat expectations
Fourth-quarter revenue reached €2.51 billion, exceeding forecasts from both Morgan Stanley and company-compiled analyst consensus estimates. The airline also reported a narrower fourth-quarter net loss of €311 million, outperforming analyst expectations.
Ryanair said it expects fiscal 2027 passenger traffic to rise 4% to approximately 216 million travellers, although first-quarter fares are projected to decline by a mid-single-digit percentage compared with the prior year. The company added that second-quarter pricing trends are currently “trending broadly flat,” with the final outcome dependent on late summer bookings.
Fuel prices and fleet expansion remain key focus areas
The airline noted that spot jet fuel prices have climbed above $150 per barrel. Ryanair has hedged 80% of its fiscal 2027 fuel requirements at around $67 per barrel through April 2027.
Group Chief Financial Officer Neil Sorahan said the remaining unhedged portion “would obviously have a very adverse impact on our costs into the current financial year” if fuel prices remain elevated.
At March 31, 2026, gross cash stood at €3.60 billion and net cash totalled €2.10 billion. Ryanair also confirmed it plans to repay its final €1.20 billion bond this month, leaving the company effectively debt free.
During the year, the airline repurchased approximately 21 million shares for €536 million and proposed a final dividend of €0.195 per share, subject to shareholder approval at the annual general meeting.
Ryanair added that certification for Boeing’s MAX-10 aircraft is expected in late summer 2026, with the first 15 aircraft deliveries scheduled for spring 2027.
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