Budget airline Ryanair reported a drop in third-quarter profits on Monday as its results were dented by an Italian fine, but lifted its fare growth and traffic outlook for FY26 citing strong demand.
Profit after tax fell 22% from the same period a year earlier to €115m, dented by a €256m fine from AGCM, the Italian Competition Authority, which is under appeal.
Revenue rose 9% to €3.21bn and passenger numbers grew 6% to 47.5m. The load factor - which gauges how full the planes are - was steady at 92%.
Ryanair said it now expects FY26 traffic to grow 4% to almost 208m passengers due to strong demand and earlier-than-expected Boeing deliveries. It had previously expected growth to 207m passengers.
The airline said unit costs have performed well and it continues to expect only modest FY26 unit cost inflation as its B-8200 deliveries, fuel hedging and effective cost control help offset increased ATC charges, higher environmental costs and the roll-off of last year's delivery delay compensation.
"While Q4 doesn't benefit from Easter, fares are trending ahead of prior year and we now believe full-year fares will exceed the 7% growth previously guided by 1% or 2%," it said. "At this stage, we are cautiously guiding FY26 PAT (pre-exceptional) in a range of €2.13bn to €2.23bn."
Ryanair said the final full-year outcome remains exposed to adverse external developments in the fourth quarter, including "conflict escalation in Ukraine and the Middle East, macroeconomic shocks and any further impact of repeated European ATC strikes and mismanagement".