RYAAY FY26 Profit Growth

What happened: Ryanair Holdings (RYAAY) reported record full-year 2026 profit after tax (PAT) of €2.26 billion, up 40% from €1.61 billion in 2025. This was driven by a 14% increase in passenger numbers to 169.1 million. Despite the record profit, the stock saw a sell-off, with investors seemingly unimpressed by the company's refusal to provide guidance for the next fiscal year.

Market impact: The airline sector, particularly budget carriers, is affected. Ryanair's strong performance indicates a recovering travel market post-pandemic, which could drive demand for other low-cost airlines like EasyJet and Wizz Air. However, the stock's reaction highlights investors' appetite for clear forward guidance, potentially impacting other companies' share prices if they also withhold guidance.

What to watch next: Ryanair's FY27 traffic growth projection of 4% to 216 million passengers will be a key metric to monitor. Additionally, the company's upcoming annual general meeting on September 20, 2027, could provide more clarity on its strategic direction and potential guidance for FY28. Lastly, any updates on Ryanair's Boeing 737 MAX fleet and potential delays could impact its share price.