‍DALLAS — Ryanair Holdings (FR) has reported a robust Q3 profit after tax of €149m today, up from €15m in Q3 last year. 

The 9% growth in traffic to 45 million passengers came on slightly higher average fares as the company enjoyed strong holiday season bookings. Despite the rise in quarterly profit, FR's nine-month year-to-date (YTD) profits went down by 12% at €1.94 billion due to an 8% reduction in average airfares.

Ryanair's Q3 FY25 refers to the third quarter of their 2025 fiscal year, not the calendar year. F fiscal year runs from April 1 to March 31. Therefore, Q3 FY25 covers the period from October to December 2024

Quarterly Performance Breakdown

Key metrics for Q3 FY25 reveal strong growth across the board:

• Customers: 44.9 million (+9% Year Over Year (YoY))
• Revenue: €2.96 billion (+10% Year Over Year (YoY))
• Operating Costs: €2.93 billion (+8% Year Over Year (YoY))
• Load Factor: Stable at 92%

Revenue growth was primarily fueled by a 10% increase in scheduled revenues (€1.92 billion) and ancillary revenues (€1.04 billion). The latter includes income from additional services such as baggage fees and seat selection. CEO Michael O’Leary said marginally higher fares (+1%) were bolstered by strong Christmas and New Year bookings.

Operating costs rose 8%, reflecting increased staff expenses and operational challenges linked to delayed Boeing aircraft deliveries. However, fuel hedge savings partially offset these cost pressures.

The airline remains 85% hedged for Q4 FY25 fuel at $80 per barrel and over 75% for FY26 at $77 per barrel, mitigating exposure to fuel price volatility.

Fleet Expansion, Growth Strategy

Ryanair’s fleet now includes 172 Boeing 737-8200 “Gamechangers” out of its 609 aircraft. These advanced models offer 4% more seating capacity while consuming 16% less fuel, aligning with FR’s sustainability goals.

Despite Boeing’s recovery from its 2024 production strike, delays persist. As a result, FR expects its FY26 traffic to fall slightly short of its earlier 210 million passenger target, revising the forecast to 206 million, a headline most outlets are focusing on.

Alas, deliveries of the remaining Boeing 737-8200 aircraft are now projected in March 2026, but the first 15 Boeing 737-10 models are expected in spring 2027.

Due to these challenges, FR has proposed shifting its growth to airports in Poland, Sweden, and Italy, where the governments encourage air traffic growth by reducing aviation taxes. The airline also expanded its Summer 2025 schedule to offer 164 new routes for 2,600 across the network.

Sustainability, Innovation

Ryanair still leads the league in sustainability, fleet modernization, and operational efficiency. The carrier is retrofitting its older Boeing 737NG fleet with winglets to reduce fuel burn by 1.5 percent and noise by 6%.

Additionally, the company is on target to migrate 25% of customers to paperless boarding by 2025, effectively eliminating about 300 tonnes of paper annually.

Such efforts align with FR's Science-Based Targets initiative (SBTi), which validates environmental objectives such as reducing CO₂ emissions per passenger-kilometer to 50 grams by 2031 from the current 29%.

Strong Balance Sheet, Shareholder Returns

The Irish low-cost carrier (LCC) is known for having one of the strongest balance sheets in the airline sector, with a BBB+ credit rating from S&P and Fitch. Net cash at the end of Q3 was a modest €75 million, but gross cash was €2.77 billion, even after accounting for significant spending, including:

• Capital investment €1.1 billion
•  Share buybacks: €1.1 billion
•  €200 million in dividend payments

The budget carrier is halfway through an €800 million share buyback program that it hopes to complete by mid-2025. When it is done, FR will have returned almost €9 billion to shareholders since 2008-the, the equivalent of 36% of the company's issued share capital repurchased and canceled.

Industry Challenges, Outlook

Ryanair continues to face operational external challenges such as air traffic control, regulatory compliance, and geopolitical issues. One of the most significant concerns is European ATC delays caused by staff shortages and old systems.

The airline has appealed to the European Commission to take overdue reforms such as better staffing levels and covering overflights in case national strikes occur.

Despite these challenges, FR expects FY25 traffic to increase 9% to almost 200 million passengers, assuming no further Boeing delays. Full-year PAT is cautiously forecast between €1.55 billion and €1.61 billion, assuming no geopolitical conflicts and ATC inefficiencies.

Setting the Benchmark for Low-Cost Airlines

Ryanair would stay on a low-cost model; leveraging the advantages of its cost structure, sound financial situation, and robust operation compared to the competition would make FR go ahead of the competition in its strategies regarding investments, growth, or further strategic priorities that could also push towards achieving long-term growth through achieving 300 million passengers by FY34.

As the airline continues to face industrial headwinds, it maintains its lead as the largest and most efficient LCC in Europe regarding operational and environmental efficiency.

Ryanair Holdings plc includes subsidiaries Ryanair DAC Tooltip Designated activity company, Malta Air, Buzz, Lauda Europe and Ryanair UK. Ryanair DAC, the oldest airline of the group, was founded in 1984.

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