2 sources·Started 8d ago·Updated 8d ago

Ryanair profit plunges 34% as Iran conflict drives fuel costs, consumer caution

RyanairMichael O'LearyIranMiddle EastJet fuelBrent crudeStrait of HormuzEurope

Sources

2outlets

BBCN

Coverage

2articles

Ryanair's pre-tax profit fell 34% to €593m in the April–June quarter, as the Iran war pushed jet fuel prices higher and made travelers hesitant to book flights. Sales were flat, and the airline cut fares to stimulate demand Source: BBC. CNBC reported profit after tax dropped to €538m from €820m a year earlier, with shares sliding 5.6% Source: CNBC.

Financial impact

Fuel costs surged: BBC noted that unhedged jet fuel costs more than doubled, while CNBC said 20% of Ryanair's fuel was unhedged and exposed to price spikes. Operating costs rose 11% to €3.81bn Source: CNBC. The airline has 80% of its 2027 jet fuel hedged at $67 per barrel Source: CNBC.

Consumer behavior and fares

CEO Michael O'Leary cited "consumer hesitancy" due to the Middle East conflict and concerns about EU jet-fuel shortages Source: CNBC. Summer fares are expected to be slightly lower than last year, with Q2 pricing trending modestly down Source: CNBC, BBC.

Winter outlook

Ryanair warned that results are "highly sensitive" to further escalation in the Middle East or Ukraine Source: BBC. O'Leary said unprofitable European airlines face a "difficult winter" and potential failures Source: CNBC. The airline has zero H2 visibility and offered no meaningful FY27 guidance .

Sources

5 quotes

BBC↗

“Ryanair's pre-tax profits dropped 34% to €593m (£503m) between April and June while sales were flat as the company was forced to cut fares to stimulate demand.”

CNBC↗

“Ryanair warned on Monday that struggling European airlines are facing a 'difficult winter' ahead, as the budget carrier reported first-quarter profit that took a 34% hit due to consumers delaying bookings amid the Middle East crisis.”

BBC↗

“The price of fuelling a plane has jumped since the US and Israel launched strikes against Iran in February and while Ryanair said it had 'hedged' or struck deals for the most future fuel costs, those not included in these arrangements had more than doubled.”

CNBC

Related events

Ryanair profit plunges 34% as fuel costs soar amid Middle East conflict

CNELIN4 sources·8d agoes

75%

Source: CNBC

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“Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%. Operating costs also rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled in the quarter.”

CNBC↗

“CEO Michael O'Leary said Q1 fares 'required stimulation as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings.'”