Ryanair Holdings PLC (RYAAY) shares jumped 5.68% in pre-market trading on Monday, following the release of the Irish carrier's strong first-quarter results for fiscal year 2026. The company reported significant growth in both earnings and revenue, driven by a substantial increase in fares.

For the quarter ended June 30, Ryanair's operating revenue climbed to 4.34 billion euros, up from 3.63 billion euros in the same period last year, surpassing analyst expectations of 4.09 billion euros. The company's diluted earnings per share rose to 0.77 euros, a significant improvement from 0.31 euros a year earlier, although falling short of the 1.17 euros forecast by analysts surveyed by FactSet.

A key highlight of the results was a 21% year-on-year increase in fares, underlining strong demand for Ryanair's services. The company also provided an optimistic outlook, stating that demand for summer 2025 is expected to remain strong, with second-quarter fares projected to recover almost all of the prior-year decline. However, Ryanair maintained its fiscal year 2026 passenger growth forecast at a modest 3% to 206 million, citing delays in Boeing aircraft deliveries. Despite these challenges, market analysts view Ryanair's business model and cash flow generation as robust, suggesting the stock may be undervalued even after today's surge.