Q1 2027 Ryanair Holdings PLC Earnings Call Transcript
Key Points
- Ryanair Holdings PLC (RYAAY) reported a Q1 profit after tax of EUR 538 million, despite a 34% decline from the previous year.
- Traffic grew by 6% to 61.3 million passengers, indicating strong demand.
- The company is 80% hedged for FY27 jet fuel at $67 a barrel, providing insulation against volatile oil prices.
- Ryanair Holdings PLC (RYAAY) has repaid a $1.2 billion bond, leaving the group essentially debt-free.
- The company is expanding with three new bases and over 130 new routes, supporting long-term growth.
- Revenue per passenger fell by 5%, and average fares were down 6%, indicating pricing pressure.
- Unit costs rose by 5%, partly due to unhedged jet fuel prices doubling.
- Q1 schedule revenue dipped 1% due to lower fares, despite traffic growth.
- The company anticipates a modest decline in Q2 pricing, with fares trending down year-on-year.
- Ryanair Holdings PLC (RYAAY) faces challenges from EU regulations, including potential impacts from new advertising rules and ETS extensions.
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(technical difficulty) This morning, Q1 profit after tax of eur538 millionos. That's a 34% decline on last year's Q1 of 820 million, primarily due to the impact of the large spike on oil prices on our 20% unhedged and also the fact that the first half of Easter moved in, Easter holiday fell into the prior year of Q4.
Q1 highlights include traffic growth on track grew 6% to 61.3 million. Revenue per passenger fell 5%, average fares were down 6%, ancillary revenues were flat. Unit costs rose 5%, which is an impressive number as the unhedged Q1 jet fuel prices doubled to $151 per barrel.
FY27 jet fuel remains 80% hedged at $67 a barrel, a development in recent weeks as we took advantage of some price weakness on the forward rates. And we're now 15% hedged for the entirety of FY28 at about $85 a barrel. As the underlying growth into the summer continues, we're operating three new bases this summer, Rabat in Morocco, Tirana in Albania, Trapani in Southern Italy, and in total, over 130
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