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Ryanair's Half Year Profit Falls 15% as Fuel Costs Rise
Ryanair said fare increases may not cover a projected €2 billion fuel bill jump as it weighs pay freezes and AI-driven cost cuts.
- 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.
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86 Articles
86 Articles
Despite the ticket price increases, the company estimates that this will not be enough to cover the damage, and is therefore considering several measures.
·Ljubljana, Slovenia
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The low-cost company's profits fall in the first half of the year mainly due to the increase in fuel prices and the average reduction of 4% in tariffs, says the company led by Michael O'Leary. Ryanair reduced the estimate of passenger transport from 216 million to 214 million
·Paço de Arcos, Portugal
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The Middle East conflict led to hesitant bookings. The low-cost airline now announces a austerity program.
·Vienna, Austria
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Coverage Details
Total News Sources86
Leaning Left10Leaning Right15Center14Last UpdatedBias Distribution38% Right
Bias Distribution
- 38% of the sources lean Right
38% Right
L 26%
C 36%
R 38%
Factuality
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