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

Ryanair reported a 34% drop in net profit to €538 million for the fiscal first quarter (April–June), driven by soaring fuel costs and a 6% reduction in average fares amid the Middle East conflict. The airline's operating costs rose 11% to €3.81 billion, as the price of uncovered jet fuel more than doubled. Source: La Vanguardia, CNN

Key figures

• Revenue edged up 1% to €4.38 billion, while passenger numbers rose 6% to 61.3 million with a 94% load factor. Source: Infobae
• Average fares fell 6% as Ryanair stimulated demand due to consumer caution over the conflict and economic uncertainty. Source: El Confidencial
• Spain, a key market, saw revenue drop 3.7% to €743 million. Source: La Vanguardia

Fuel costs and hedging

Ryanair has hedged 80% of its fuel for fiscal 2027 at ~$67 per barrel, protecting profitability from spot price volatility. The remaining 20% exposed to market rates saw prices double. The airline has also hedged 15% of fiscal 2028 consumption at $85/barrel. Source: El Confidencial, CNN

Outlook

CEO Michael O'Leary expects second-quarter fares to decline modestly year-on-year, with full-year traffic growth of 4% to 216 million passengers. Ryanair is debt-free after repaying a €1.2 billion bond in May. Source: Infobae, El Confidencial