Ryanair's Upgraded Fare Growth Forecast Boosts Profit Outlook: ProPicks AI Analysis
Ryanair has revised its forecast for average fare growth for the current financial year, expecting fares to increase by 1 or 2 percentage points more than previously anticipated. The airline, which is Europe's largest in terms of passenger numbers, stated that fares in the first three months of 2026 were performing better than the previous year. As a result, Ryanair now predicts that full-year after-tax profit will be approximately one-third higher than the previous year.
Despite not benefiting from Easter in the fourth quarter, Ryanair is optimistic about the performance of its fares. The airline now expects full-year fares to surpass the previously projected 7% growth by 1% or 2%. This positive outlook has led Ryanair to cautiously guide pre-exceptional after-tax profit in the range of 2.13 billion euros to 2.23 billion euros, compared to 1.61 billion euros in the previous year.
Ryanair is facing an exceptional charge due to a 256 million euro fine imposed by the Italian competition authority in December. However, the airline is confident that the fine will be overturned on appeal. The company's financial performance is expected to remain strong, with the upgraded fare growth forecast contributing to the positive outlook for full-year after-tax profit.
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