Ryanair Q1 2026 Financial Analysis: Profit Falls 34% Despite Revenue Growth, Strong Balance Sheet, and Rising Passenger Traffic

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Ryanair's Q1 2026 profit after tax fell 34% to €538 million from €820 million, despite revenue increasing 1% to €4.38 billion and passenger numbers rising 6% to 61.3 million. The decline was mainly driven by a 6% fall in average fares due to weaker consumer demand and later bookings, along with an 11% increase in operating costs caused largely by higher fuel expenses.

Despite the weaker quarter, Ryanair remains financially strong, supported by fuel hedging, a debt-free balance sheet, strong cash reserves, and a modern fuel-efficient fleet.





Key Financial Analysis Metrics

  • Book Value Per Share: Decreased to €9.12 as of June 30, 2026, from €9.68 at March 31, 2026, driven by a €1,008.6M reduction in the cash-flow hedging reserve.
  • Current & Quick Ratios: Both declined from 0.90 at March 31, 2026, to 0.79 at June 30, 2026, due to a lower current derivative financial asset balance (inventories are negligible at €4.6M).
  • Working Capital: The deficit widened significantly from -€827.9M at March 31, 2026, to -€1,651.3M at June 30, 2026
  • Debt to Equity: Plunged from 13.3% at March 31, 2026, to 0.4% at June 30, 2026, following the final €1.2bn Eurobond repayment in May 2026, which left the Group operational-debt free.
  • Interest Coverage Ratio (ICR): Dropped to 38.6x for Q1 2026 compared to 51.9x in Q1 2025, pushed down by a 37% contraction in operating profit from unhedged jet fuel price spikes.
  • ROE & ROA (Non-Annualized): ROE fell to 5.7% (vs. 11.7% in Q1 2025) and ROA decreased to 3.0% (vs. 4.5% in Q1 2025), reflecting lower quarterly net income.
  • Free Cash Flow Yield: Raw quarterly FCF generation softened to €728.7M down from €835.4M in Q1 2025.
  • Earnings Growth (EG) & PEG: Earnings growth dropped -34% (Basic EPS fell from €0.7717 to €0.5164), leaving the PEG ratio structurally negative/inapplicable for the period. EV & Multiples (EBITDA): Q1 EBITDA dropped to €992.5M (from €1,256.6M in Q1 2025); exact Enterprise Value (EV) multiples are constrained by missing market stock pricing, but the capital structure boasts a massive €2.7bn Net Cash position.

Return Metrics

  • Directional Return Average: Weekly returns average 0.270% (median 0.170%).
  • Directional Extreme Swings: Weekly performance ranges from a minimum of -25.687% to a maximum of 28.040% (standard deviation 4.930%).
  • Positive/Negative Ratio: 51.55% of weeks closed positive (averaging +3.66%) and 48.10% closed negative (averaging -3.36%).
  • Intra-week Volatility Range: The high-to-low price spread within a single week averages 6.342% (median 5.451%).
  • Volatility Extremes: The narrowest intra-week spread was 1.590%, while the most volatile week spiked to a maximum range of 31.315%.

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