Only Ryanair is an exception to this sweeping statement. Two years ago, we reported in Ryanair: Record year, a strong signal that of the three low-cost airlines listed in London, the Irish company was by far our favorite.

It is true that the group led by the flamboyant Michael O'Leary does not do things like everyone else. In other words, it lives within its means and religiously avoids debt; prefers to buy back its shares rather than pay dividends; and does not hesitate to place a mega-order for Boeing 737 Max aircraft after a series of accidents—at bargain prices—when other buyers take flight.

Fiscal year 2025 ended in line with previous years for Ryanair, which generated free cash flow of €1.8bn, €1.5bn of which was redirected to share buybacks. This is a historic record for the group, made all the more remarkable given that it was achieved despite a significant drop in bookings. 

This brings to a close a contrasting ten-year cycle. On the one hand, revenue has doubled and cash generation remains excellent, while on the other hand, competition from major airlines—all of which have launched low-cost routes—and pressure from online booking platforms have severely squeezed margins.

Barring any unforeseen disasters, the next two years look promising, as Ryanair—another unique feature—systematically hedges against oil price increases. The airline has taken advantage of the recent slump in crude oil prices to secure low fuel costs for the next 24 months.

This opportunistic move will have a clear positive impact on its earnings. As the company is cutting back on all other expenses, fuel costs account for nearly 40% of its operating expenses, compared with 20% to 25% for its peers, making it a significant variable that can be adjusted.

Critics will point out that the €1.5bn mega share buyback over the past 12 months has mainly enabled Michael O'Leary to secure €100m in stock option compensation—the strike price of these options was €21. The less cynical will point out that, at the end of the day, everyone has gained from the deal.

On a different note, see also Air France-KLM remains less discounted than one might think.