Ryanair signs five-year Google Cloud deal, expands use of AI in airline operations

Ryanair CEO Michael O'Leary warned that airfares could rise significantly next year if oil prices remain high, impacting the low-cost airline's business model. Ryanair's U.S.-listed shares (RYAAY) are near a one-year low. The company has hedged 80% of its fuel needs through March 2027 at $67 per barrel, providing some cost stability. First-quarter profit fell 34% to €538 million, and the airline cut its full-year passenger target due to fuel price increases.

Ryanair shareholders approved a €150 million remuneration package for CEO Michael O’Leary, with 60.7% voting in favor. The package ties payouts to performance targets, including €4 billion in annual profit or a share price exceeding €42. Despite opposition from 39.3% of shareholders, the plan was endorsed, aligning O’Leary’s interests with shareholders through 2032.

Ryanair's ancillary revenue, including checked bags, seat selection, and in-flight sales, now accounts for nearly one-third of its total revenue, up from 19% in the late 2000s. In the fiscal year 2026, ancillary revenue reached €4.99 billion, with total revenue estimated at over €13 billion. The airline's strategy focuses on keeping base fares low while generating significant income from add-on services.

Ryanair reported €4.99 billion ($5.8 billion) in ancillary revenue for FY2026, a 6% year-on-year increase. The airline's revenue per passenger rose 7% to €24 ($27), driven by fees for baggage, seat selection, and in-flight purchases. Ryanair's low-cost model relies on high passenger traffic (208.4 million) and a wide range of optional services, contributing to a 40% increase in profit after tax before exceptional items, to €2.26 billion ($2.7 billion).

Ryanair shareholders approved a bonus scheme for CEO Michael O’Leary, with 60.7% in favor and 39.3% against. The plan extends his contract to 2032 and offers up to €150m if targets, including a share price above €42, are met. O’Leary dismissed the opposition, noting the payout is tied to performance.

Ryanair's CEO Michael O'Leary's £129m pay deal received 61% shareholder approval, despite 39% opposition. The deal includes 10M share options if performance targets are met. Ryanair's Q2 profits fell 34% to €538M due to higher fuel costs and lower fares, though passenger numbers rose 6%.