Q1: 2026-06-26 Earnings Summary

EPS of $0.57 beats by $0.16

 | Revenue of $342.68M (-1.14% Y/Y) beats by $11.14M

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Unknown Executive

Welcome to our pre-close catch-up for Q3 fiscal year 2026, which was recorded on June 22, 2026. Its content will neither be amended nor updated at any time. With this Q3 episode of our pre-close catch-up, we aim at having everyone on the same page regarding our upcoming Q3 fiscal year 2026 before we go into silent period. We sum up and repeat relevant topics which were communicated in public as potentially relevant for the upcoming quarter and address current macro topics, for example, foreign exchange. Obviously, we are before closing and therefore, have no indications on our Q3 actuals with the quarter ending on June 30.

And before we start with this episode, let me remind you of the safe harbor statement on our website for this recording. I’ll start with some comments on the translational foreign exchange impacts on revenue. As usual, we try to triangulate the transactional impact from the latest foreign exchange movements to align the absolute revenue and organic growth numbers in the models. Let me quote our CFO on translation impact in Q3.

“We see the year-over-year translation headwind easing in Q3 compared to Q2 as we will be going against an already weaker U.S. dollar from prior year.”

In Q2, we saw a translational headwind of around 7%. In Q3, we expect this to become significantly less negative since in prior year Q3, the U.S. dollar became weaker. However, we still expect a year-over-year weaker U.S. dollar in Q3. Assuming that on average, in Q3, the U.S. dollar would be around 3% to 4% weaker than in prior year quarter and assuming for simplification purposes, only 50% U.S. dollar exposure, this would mean roughly a translational headwind of 1 to 2 percentage

Ryanair will “reluctantly” allow parents to sit with their children for free after an investigation into the practice was opened, bringing the airline in line with European industry standards.

Previously, Europe’s largest airline by passenger numbers charged a fee—typically $10.70 each way per adult—to allow up to four children aged 2 to 11 to sit next to an accompanying adult. Moving forward, families who do not pay to reserve seats will be allocated random seats together for free after check-in, likely toward the rear of the plane, Reuters reported.

THREE RYANAIR PASSENGERS REMOVED FROM FLIGHT AFTER BRAWL ERUPTS: VIDEO

Ryanair Boeing 737 MAX aircraft flying on final approach. On Friday, the budget carrier said it would allow parents to sit with their children for free. (Photo by Nicolas Economou/NurPhoto via Getty Images / Getty Images)

“We will reluctantly adjust to this industry standard as we don’t want to waste time explaining to misguided regulators how badly they misunderstand what is in the best interest of UK and Europe’s consumers,” Ryanair CEO Michael O’Leary said in a statement.

The Ireland-based budget carrier’s shift came after the Competition and Markets Authority (CMA) launched an inquiry into whether the original policy violated consumer law.

PASSENGERS SETTLE MASSIVE LAWSUIT WITH ALASKA AIRLINES AND BOEING AFTER MIDFLIGHT DOOR PLUG FAILURE

Ryanair CEO Michael O’Leary said the company will “reluctantly adjust to this industry standard.” (Fernando Sanchez/Europa Press via Getty Images / Getty Images)

A CMA spokesperson said the agency will test whether the new policy complies with the law. While they noted the change would be “a win for families,” they added that the investigation remains ongoing.

“It doesn’t change the fact that families have been paying for ‘mandatory family seats,’” the spokesperson said.

A Ryanair Boeing 737 MAX 8 passenger airliner comes in to land at Stansted Airport in Essex. (Nicholas T. Ansell/PA Images via Getty Images / Getty Images)

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FOX Business has reached out to the CMA for comment.