Ryanair Holdings Plc reported a sharp drop in third-quarter profit on Monday, largely due to an exceptional charge linked to a fine from Italian regulators. The airline posted a profit of €30 million after exceptional items for the quarter ended December 31, down from €149 million a year earlier.
Ryanair said the decline was driven by an €85 million exceptional charge related to a penalty imposed by Italy’s competition authority. Excluding exceptional items, profit for the quarter fell 22% year on year to €115 million.
The exceptional charge represents roughly one-third of a total €256 million fine issued in late December by Italy’s antitrust authority, AGCM.
Despite the profit hit, revenue increased 9% to €3.21 billion, supported by higher passenger volumes and stronger fares. Passenger traffic rose 6% to 47.5 million, while the average fare climbed 4% to €44.
The airline’s load factor remained steady at 92%. Scheduled revenue grew 10% to €2.10 billion, while ancillary revenue, which includes services such as baggage and seat selection, increased 7% to €1.11 billion.
Operating costs before exceptional items rose 6% to €3.11 billion. Fuel and oil expenses increased to €1.26 billion, staff costs rose to €451 million, and airport and handling charges climbed to €403 million.
Route charges totaled €311 million during the quarter, while depreciation costs increased to €326 million.
Ryanair noted that the lack of compensation linked to aircraft delivery delays weighed on other income compared with the same period last year. Net finance and other income fell sharply to €9 million, down from €90.2 million a year earlier.
For the first nine months of the financial year, the airline reported profit after tax of €2.57 billion, compared with €1.94 billion in the prior year period. Revenue for the nine months rose 12% to €13.03 billion, while operating profit before exceptional items reached €2.88 billion.
Passenger traffic over the nine-month period increased to 166.5 million, reflecting continued strong demand across Ryanair’s network.
Ryanair said gross cash stood at €2.4 billion at the end of December, after accounting for €1.2 billion in debt repayments, €1.4 billion in capital expenditure, and €600 million in shareholder distributions. Net cash was reported at approximately €1 billion.
Looking ahead, the airline said 84% of its fuel requirements for the fourth quarter of fiscal 2026 are hedged at $77 per barrel. Around 80% of fuel needs for fiscal 2027 are hedged at roughly $67 per barrel.
As of December 31, Ryanair operated a fleet of 643 aircraft, including 206 Boeing 737-8200 aircraft.
