Ryanair: Fiscal Q2 Earnings Snapshot – WTOP News
- 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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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
High fuel costs and hesitant bookings have damaged the quarterly balance of the low-cost airline Ryanair. With a savings program, the Group wants to counter this.
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