Ryanair's Half Year Profit Falls 15% as Fuel Costs Rise
Ryanair said higher jet-fuel costs and lower fares cut margins, while passenger numbers rose 6% and management weighed temporary pay freezes.
- Ryanair reported a 15% profit decline to €2.15 billion for the six months ending September 30, with CEO Michael O'Leary warning the airline is considering pay freezes to counter soaring fuel costs from the US-Iran war.
- Fuel costs surged 10% during the period as the unhedged 20% of Ryanair's fuel exposure faced doubling prices, despite the airline hedging 80% at $67 a barrel.
- Passenger numbers increased 6% to 125.8 million and revenues rose 3% to €10.08 billion, yet average fares fell 4% year-on-year to €55.70, limiting profit recovery.
- O'Leary warned that rising fares next year will likely not offset an estimated €2 billion fuel bill increase, prompting reviews of crewing ratios and artificial intelligence use.
- Ryanair declined to provide full-year guidance, citing it remains "highly sensitive to conflict escalation in the Middle East and Ukraine," and expects jet fuel prices to stay elevated through 2027.
61 Articles
61 Articles
AN IRISH low-cost airline expects fuel prices to remain high "well into 2027" unless the conflict in Iran is resolved quickly.
The airline achieved a profit of 2,147 million euros during its first fiscal semester of 2027. It was forced to lower the rates by 4% to stimulate the demand
In a statement, Ryanair explained that the decrease in profits was mainly due to the increase in fuel prices and the reduction in air fares, despite the fact that it had recorded a 6% increase in passenger traffic, reaching 125.8 million passengers.
Ryanair Holdings (cdi) Q2 Earnings Call Highlights
Ryanair Holdings (cdi) (LON:0RYA) reported first-half profit after tax of €2.15 billion, down 15% from €2.54 billion a year earlier, as lower fares and a sharp increase in unhedged fuel costs outweighed a 6% increase in passenger traffic. Group CEO Michael O’Leary said traffic rose to 125.8 million
Coverage Details
Bias Distribution
- 41% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
