Ireland's Ryanair H1 profit falls 15% as fuel costs rise

Overview

• Ireland-based low-cost airline's H1 revenue rose 3% but profit after tax fell 15%

• Traffic grew 6% but average fares declined 4% amid higher unhedged fuel costs

• Company announced €800 mln share buyback and declared interim dividend

Outlook

• Ryanair expects FY27 traffic to grow 3% to 214 mln passengers

• Company says Q3 demand is strong, with fares trending modestly ahead of last year

• Ryanair says it is too early to provide meaningful FY27 PAT guidance due to low visibility

Result Drivers

• UNHEDGED FUEL COSTS - Co said profit fell as price of 20% unhedged jet-fuel doubled, raising operating costs

• LOWER FARES - Co said average fares fell 4% as Middle East conflict led to consumer hesitancy and later bookings

• TRAFFIC GROWTH - Co said traffic grew 6% to 125.8m passengers, supporting revenue despite lower fares

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy"

• Wall Street's median 12-month price target for Ryanair Holdings PLC is €28.00, about 22.3% above its October 30 closing price of €22.90

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 2 - Ryanair says it might freeze pay, cut other costs to offset high fuel prices

• Oct 31 - Alaska Air to cut about 200 jobs as fuel shock squeezes earnings

• Oct 30 - China Eastern Airlines Q3 profit drops 98% on jet fuel costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)