Ryanair profits hit by jet fuel prices and fare cuts

Ryanair saw quarterly profits slump by more than a third as the Iran conflict sent jet fuel prices soaring.

The Irish low-cost carrier reported a 34 per cent drop in profits after tax to £457 million for the three months to the end of June.

It said earnings were affected by surging jet fuel prices for the 20 per cent of its fuel needs that are not locked in, as well as a six per cent drop in average fares.

This offset six per cent growth in passenger numbers to 61.3 million and a one per cent rise in overall revenues to £3.72 billion.

Chief executive Michael O’Leary said the airline took action to reduce fares “as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings”.

Jet fuel prices doubled to £111 a barrel in the quarter as the Iran conflict sent oil and gas prices rocketing.

This helped send Ryanair’s operating costs jumping 11 per cent higher to £2.9 billion in the quarter.

Mr O’Leary said it was too early to give a full-year outlook for the airline’s results, pointing to “adverse external developments, including conflict escalation in the Middle East and Ukraine, the price of unhedged jet fuel, macro-economic shocks and continuing European air traffic control strikes and mismanagement”.

He added: “While summer 2026 volumes are strong, the booking window remains closer-in than last year, which further reduces visibility.

“As is normal this early in the year, we have zero second-half visibility, so it remains far too early to provide any meaningful full-year 2026-2027 profit after tax guidance.”

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