Ryanair says airfares under pressure due to Iran war uncertainty

Budget airline Ryanair has warned that rising fuel costs and consumer uncertainty linked to the war involving Iran are putting pressure on fares and weakening pricing trends across its network.

The Irish carrier said airfares have softened in recent weeks due to economic uncertainty stemming from the conflict in the Middle East, with prices now expected to fall by a mid-single-digit percentage in the first quarter to the end of June, Caliber.Az reports, citing dpa.

It also revised its summer outlook, saying it now expects fares to remain broadly flat between July and September, compared with earlier forecasts of a low single-digit increase during the peak travel season.

Ryanair chief executive Michael O’Leary said pricing had eased as a result of higher oil prices, concerns over potential fuel shortages and the risk of inflation affecting consumer spending.

The airline said it has already secured around 80 per cent of its jet fuel requirements, but warned that costs for the remaining portion have “spiked” amid the ongoing conflict. If prices remain elevated, it said fuel costs could rise by a mid-single-digit percentage in 2026–27.

Despite the pressures, Ryanair reported a 40 per cent increase in underlying after-tax profit to €2.26 billion for the year to 31 March, slightly ahead of expectations. Pre-tax profit rose 36 per cent to €2.42 billion.

However, the company said it was “far too early” to provide a full-year outlook due to ongoing uncertainty around demand and fuel prices.

O’Leary said European airlines were increasingly sourcing jet fuel from alternative suppliers to offset disruptions linked to instability around the Strait of Hormuz.

He added that while the conflict had created uncertainty, Europe remained relatively well supplied, with imports coming from regions including West Africa, the Americas and Norway.

Like other carriers, Ryanair said more passengers are booking flights at the last minute, although overall demand remains “robust”.

The airline expects to carry 216 million passengers in the year to March 2027, representing 4 per cent growth, in line with the previous year.

Ryanair also said discussions over a contract extension for O’Leary, including a proposed share award package linked to performance targets, are nearing completion ahead of consultations with major shareholders.

By Bakhtiyar Abbasov