20th Jul 2026 07:01
(Alliance News) - Ryanair Holdings PLC on Monday said it carried more passengers in its financial first quarter but at lower fares, while unhedged jet fuel costs "spiked" due to the war in the Middle East.
Profit after tax dropped 34% to EUR538 million in the three months that ended June 30 from EUR820 million a year before. Revenue edged up 0.9% to EUR4.38 billion from EUR4.34 billion, but operating costs grew by 11% to EUR3.81 billion from EUR3.42 billion.
The Dublin-based budget airline carried 61.3 million passengers in the recent quarter, up 5.9% from 57.9 million a year before, and with a steady load factor of 94%. However, revenue per passenger slipped by 5%, as average fares fell by 6% and ancillary revenue was flat, amid "consumer hesitancy".
Ryanair said 80% of its financial 2027 jet fuel needs are hedged at USD67 per barrel of crude. However, the 20% that isn't hedged more than doubled in price, due to the crimp in supply caused by the closure of the Strait of Hormuz by Iran. The company said it has now hedged 15% of its financial 2028 fuel needs at USD85 a barrel.
Looking ahead, Ryanair said traffic remains on track to grow by 4% to 216 million passengers in financial 2027, with a 6% increase in the first half followed by a 2% rise in the second. However, it said pricing is "trending modestly down" in the second quarter, compared to a year before.
"As is normal this early in the year, we have zero H2 visibility so it remains far too early to provide any meaningful FY27 [profit after tax] guidance," said Chief Executive Officer Michael O'Leary.
"The final FY27 PAT remains highly sensitive to adverse external developments, incl. 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."
In early June, Ryanair criticised the EU commission for allowing an "illegal strike" by Belgian air traffic controllers. Earlier in the year, flights were cancelled at Berlin airport due to an air traffic controller strike, and French air traffic controllers staged multiple strikes last year.
By Tom Waite, Alliance News editor
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