Ryanair reported a profit after tax of 538 million euros ($615.3 million) for the April to June quarter, a significant decrease from 820 million euros the previous year. The airline attributed this decline to consumer hesitancy caused by the ongoing Middle East conflict, which has led to a 6% drop in ticket fares and an 11% increase in operating costs, reaching 3.81 billion euros.
Notably, 20% of Ryanair's fuel is unhedged, exposing it to potential price spikes. However, the company has hedged 80% of its jet fuel for 2027 at $67 per barrel and 15% for 2028 at $85 per barrel, which Ryanair CEO Michael O'Leary claims provides a cost advantage over competitors.
O'Leary warned that unprofitable airlines may struggle during the upcoming winter, emphasizing the difficult environment for the European airline sector amid economic uncertainty and concerns about fuel shortages