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Ryanair Holdings PLC on Monday said profit more than doubled in the first quarter, helped by stronger fares during the Easter travel season, as the low-cost airline reiterated its cautious outlook for the rest of the year. The Dublin-based carrier said pretax profit for the three months ended June 30 surged to €930.2 million from €400.8 million a year before, as traffic grew 4% to 57.9 million passengers from 55.5 million and average fares rose 21% to €51. Total revenue climbed 20% to €4.34 billion from €3.63 billion. Scheduled revenue increased 26% to €2.94 billion, while ancillary revenue including extras like priority boarding and luggage fees rose 7% to €1.39 billion. Ryanair attributed the fare increase to the timing of the Easter holiday in April, weak prior-year comparisons, and stronger-than-expected close-in pricing. Operating profit more than doubled to €913.3 million from €365.7 million. Operating costs rose 5% to €3.42 billion, largely offset by fuel hedges that cushioned the impact of higher air traffic control and environmental compliance costs. The company said it was around 85% hedged for financial 2026 at $76 per barrel. The airline ended June with net cash of €2.0 billion, up from €1.3 billion three months earlier. Ryanair said this strong liquidity positions it well to repay about €2.1 billion in maturing bonds over the next 10 months. Looking ahead, Ryanair maintained its forecast for passenger growth of 3% to 206 million this year, noting continued aircraft delivery delays from Boeing Co. It expects to recover nearly all of last year’s 7% drop in average fares, but warned that visibility for the second half remains limited. ‘It remains too early to provide meaningful financial 2026 profit after tax guidance,’ said Chief Executive Michael O’Leary. ‘We do, however, cautiously expect to recover almost all of last year’s 7% fare decline, which should lead to reasonable net profit growth.’ O’Leary noted that while summer travel demand is strong, second-quarter fares will rise more modestly than in the first, and the full-year outlook remains vulnerable to external risks such as oil prices and air traffic control strikes. Ryanair shares closed marginally lower at €23.12 on Friday in Dublin. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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