Ryanair’s first-quarter earnings fell 34% year-on-year as Iran war-driven fuel prices and weaker demand pressured margins.
Ryanair posted a first-quarter net profit of €538 million, a 34% decline from €820 million a year earlier. The drop was driven by unhedged jet fuel costs surging above $150 a barrel amid the Iran conflict and a 6% year-on-year decline in passenger fares.
Operating costs rose 11% to €3.81 billion, while revenue grew just 1% to €4.38 billion despite a 6% increase in traffic to 61.3 million passengers. Analysts had expected €579 million in profit, according to consensus estimates.
The airline extended its fuel hedging program, locking in 15% of fiscal 2028 needs at $85 a barrel and maintaining 80% of fiscal 2027 requirements at $67 a barrel. CEO Michael O’Leary noted ongoing consumer hesitancy and weaker pricing trends for the current quarter.