Key facts
- Ryanair's pre-tax profit fell 34% to €593m in the April-June quarter.
- Soaring jet fuel prices and customer hesitancy due to the Middle East conflict led to fare cuts.
- Unhedged jet fuel costs more than doubled, contributing to an 11% rise in operating costs.
- Ryanair warned that its full-year results are sensitive to geopolitical events and fuel prices.
- The airline's after-tax profit of €538 million missed analyst expectations.
Ryanair reported a 34% drop in pre-tax profit to €593 million for the April to June quarter, citing soaring jet fuel prices and customer hesitancy due to the Middle East conflict. The airline was forced to cut fares to stimulate demand, resulting in a 6% decrease in average fares year-on-year. Operating costs jumped 11% to €3.8 billion as unhedged fuel prices more than doubled, surpassing $150 per barrel in some scenarios. Despite hedging 80% of its fuel needs for the current financial year at $67 per barrel, Ryanair warned that its full-year results are highly sensitive to external factors like conflict escalation and unhedged fuel prices. The airline's after-tax profit of €538 million missed analyst forecasts of €579 million. Crude oil prices have risen above $90 a barrel amid the geopolitical tensions.