Ryanair reported carrying 165 million passengers in the fiscal year ending March 2026, marking a 12% year-over-year increase and surpassing pre-pandemic levels by 8%. This growth was driven by the addition of 30 new routes across Southern Europe and Eastern Europe, where load factors rose to an industry-leading 96%. Management forecasts capacity to expand by 10% in fiscal 2027, targeting underserved secondary airports to sustain above-industry traffic growth.

The carrier maintained its all-inclusive cost per seat unit at €2.89, down 4% from the prior year, as fuel hedges covered 65% of projected consumption at an average price of $75 per barrel. Negotiated airport fee rebates and a leaner ground operations model contributed to a 7% reduction in non-fuel unit costs. Ryanair’s fuel efficiency program, including investment in next-generation Boeing 737 MAX aircraft, is expected to deliver another 3% unit cost improvement over the next 12 months.

Ryanair posted adjusted operating profit of €3.1 billion for fiscal 2026, up 28% year-over-year, while free cash flow reached €2.4 billion, enabling the company to reduce net debt by €1.2 billion. The board approved a €1.0 billion share repurchase program and raised the interim dividend by 15%, underscoring confidence in cash generation. With a return on invested capital of 21.5%, Ryanair remains one of the most profitable airlines in Europe.

Despite trading at a 52-week high valuation multiple of 12.5x enterprise value to EBITDA, Ryanair’s forward multiple of 10.8x reflects anticipated earnings growth of 18% in fiscal 2027. Consensus estimates project EPS to rise from €2.15 to €2.54 over the next 12 months. Analysts highlight further upside catalysts, including expansion into North Africa and digital ancillary sales growth, which could drive non-ticket revenue to 25% of total revenues by 2028.