Ryanair’s pre‑tax profits plunged by 34%, falling to €593 m (£503 m) in the April‑June quarter as the Iran‑related Middle‑East conflict sent jet fuel prices soaring.
While overall sales stayed flat, the carrier cut fares to stimulate demand, a move that briefly lifted passenger traffic during the Easter holiday.
The airline highlighted that summer fares for July‑September are expected to be modestly lower than last year, citing *consumer hesitancy* around air travel.
Consumer hesitancy has already weighed down bookings.
Jet fuel costs swelled after the US and Israel launched strikes against Iran in February. Although Ryanair had hedged most future fuel expenses, unhedged costs tripled, putting strain on its profit outlook.
Crude oil prices hit $90 (£67) a barrel at the height of the flare‑up, before easing slightly, reflecting the ebb and flow of hostilities in the region.
The airline’s chief finance officer, Neil Sorahan, noted that flights on popular Mediterranean routes remained full, but passengers were booking just a bit later than usual.
Between April and June, Ryanair’s revenue edged up 1 % to €4.4 bn, and passenger numbers rose 6 % to 6.1 m, despite a 6 % fall in fares to attract cost‑concerned flyers.
Shares in the airline fell 5 % on the day, as investors weighed the heightened risk from renewed Middle‑East clashes and the vulnerability of unhedged fuel costs.
“The renewed escalation in hostilities without a lasting resolution spells challenging times for the airline and the travel sector” said investment director Russ Mould of AJ Bell.
