Ryanair (RYAAY) Stock Drops Despite Record Profits as Fuel Price Uncertainty Looms
The Irish airline giant announced underlying after-tax earnings of €2.26 billion for the fiscal year ending March 31, 2026—representing a substantial 40% surge from the previous years €1.61 billion. Operating profit before tax climbed 36% to reach €2.42 billion. However, the impressive financial performance failed to impress the market. Shareholders reacted negatively to managements refusal to issue guidance for the upcoming fiscal year, coupled with expectations that first-quarter ticket prices will drop by a mid-single-digit percentage. Full-year revenue increased 11% to €15.54 billion. The carrier transported 208.4 million passengers, representing 4% growth, while average fares climbed 10% to approximately €51 per traveler. Fourth-quarter revenue of €2.51 billion exceeded Morgan Stanley‘s projection of €2.45 billion and the consensus forecast of €2.42 billion. The airline’s Q4 net loss improved to €311 million, surpassing analyst predictions. Chief Executive Michael O‘Leary explained that providing concrete FY27 profit targets was impossible under current conditions. “With zero H2 visibility and significant fuel price/potential supply volatility it is far too early to provide any meaningful FY27 profit guidance at this time,” O’Leary stated. Escalating Fuel Price Pressures Spot market jet fuel prices have soared above $150 per barrel, fueled by Iranian conflict and disruptions at the Strait of Hormuz. Ryanair has secured hedging