Europe’s largest budget airline reports a sharp earnings decline as geopolitical tensions and rising fuel expenses weigh on bookings.
Ryanair posted a 34% year-on-year decline in first-quarter profit after tax, falling to 538 million euros from 820 million euros. The drop reflects delayed consumer bookings amid the Middle East conflict, economic uncertainty, and a 6% decline in average ticket fares.
Operating costs surged 11% to 3.81 billion euros, driven by a more than doubling in the price of its 20% unhedged fuel. The airline noted that 20% of its fuel exposure remains unhedged, leaving it vulnerable to price spikes.
Ryanair’s CEO highlighted a conservative hedging strategy, with 80% of 2027 fuel hedged at $67 per barrel and 15% for 2028 at $85. The airline warned of a challenging winter for unprofitable carriers in Europe.