Ryanair profit falls 34% as soaring fuel costs, lower fares weigh

Ryanair reported a 34% fall in first-quarter profit on Monday (July 20), as surging jet fuel costs linked to conflict in the Middle East and lower ticket prices outweighed strong passenger growth.

The Irish low-cost carrier said profit after tax fell to 538 million euros ($615.9 million) in the three months ended June 30, from a year earlier, Caliber.Az reports via the German Press Agency.

The airline said higher fuel costs and a 6% decline in average fares, introduced to stimulate demand, offset a 6% increase in passenger numbers to 61.3 million and a 1% rise in revenue to 4.38 billion euros.

Chief Executive Michael O'Leary said Ryanair reduced fares after conflict in the Middle East fuelled consumer caution, concerns over European jet fuel supplies, economic uncertainty and later booking patterns.

Jet fuel prices doubled to around $150 per barrel during the quarter after the Iran war drove oil and gas prices sharply higher and disrupted supplies through the Strait of Hormuz, the airline said. As a result, Ryanair's operating costs rose 11% to 3.42 billion euros.

Although an interim ceasefire between the United States and Iran briefly eased energy prices last month, renewed fighting and stalled negotiations have pushed prices higher again.

Ryanair said it was too early to provide guidance for its full-year 2026-27 profit, warning that earnings remain highly sensitive to external risks, including further escalation of conflicts in the Middle East and Ukraine, volatile unhedged fuel prices, economic shocks, and ongoing European air traffic control disruptions.

The airline added that fares are continuing to ease modestly in the current quarter, despite a slight improvement in bookings, as customers continue to book flights closer to departure.

"While summer 2026 volumes are strong, the booking window remains closer-in than last year, which further reduces visibility," O'Leary said.

"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 2026-27 profit after tax guidance," he added.

By Aghakazim Guliyev