Ryanair Posts Strong Q3 Earnings But Revises FY26 Traffic Target Over Boeing Delays: Retail’s On Wait-And-Watch Mode

The company announced a 10x year-over-year rise in its third-quarter net profit at €149 million ($156 million) led by a 9% growth in traffic to 45 million passengers at marginally higher fares.

Shares of Ryanair Holdings plc (RYAAY) rose over 1% on Monday after Europe’s largest budget airline reported a significant jump in its fiscal third-quarter profits.

The company announced a 10x year-over-year rise in its third-quarter net profit to €149 million ($156 million), led by a 9% growth in traffic to 45 million passengers at marginally higher fares. According to a CNBC report, analysts had estimated a profit of €60 million.

The airline said it continues working with Boeing to accelerate aircraft deliveries but has revised its FY26 traffic target.

“While B737 production is recovering from Boeing’s strike in late 2024, we no longer expect Boeing to deliver sufficient aircraft ahead of S.25 to facilitate FY26 traffic growth to 210 million passengers. Boeing delays have forced us to revise our FY26 traffic target to 206 million (just 3% growth),” the firm said.

Ryanair expects European short-haul capacity to remain constrained in 2025 as many of Europe’s Airbus operators continue to work through Pratt & Whitney engine repairs, major original equipment manufacturers (OEMs) struggle with delivery backlogs, and EU airline consolidation continues.

The airline anticipates FY25 traffic to reach almost 200 million, subject to no further adverse news on Boeing delivery delays.

The firm also highlighted that while third-quarter fares were marginally stronger than the prior year, this year’s fourth quarter will not benefit from 2024’s early Easter.

“At this stage, we are cautiously guiding FY25 net profit in a range of €1.55 billion to €1.61 billion,” it said.

On Stocktwits, retail sentiment continued to trend in the ‘neutral’ territory (50/100).

Meanwhile, Ryanair shares have gained over 9% this year but are down over 12% over the past year.

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