Ryanair Profits Plunge 34% as Middle East Conflict Drives up Fuel Costs
The airline said unhedged jet-fuel costs more than doubled and fares fell 6% as passengers booked later, squeezing margins.
- On Monday, Ryanair reported a 34% profit drop to €538 million for its April-June quarter, citing consumer hesitancy and delayed bookings amid the Middle East crisis.
- Operating costs rose 11% to 3.81 billion euros as the price of Ryanair's 20% unhedged fuel more than doubled during the quarter, compounding margin pressure.
- Passenger numbers grew 6% to 61.3 million with a 94% load factor, yet average fares fell 6% year-on-year as Ryanair discounted prices to maintain volumes.
- Chief Financial Officer Neil Sorahan warned of a "difficult winter" for European aviation, predicting consolidation and capacity cuts that could prove "positive for pricing."
- Ryanair CEO Michael O'Leary said the company's "conservative hedging policy" provides a "cost advantage over all other EU competitors" amid volatile oil prices and economic uncertainty.
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The Irish airline Ryanair warns that the weaker European financial carriers will have a difficult winter, after its profit in the first quarter of fiscal year fell by 34%, on the basis of rising fuel costs and delays caused by the conflict in the Middle East, submits CNBC.
The net profit of Ryanair, Europe's largest low-cost carrier (LCC), fell by more than 30%. Performance deteriorated as international oil prices surged in the aftermath of armed conflicts between the U.S., Israel, and Iran, while average airfares also dropped. According to Reuters on the 20th (local time), Ryanair's net profit for the April-June period (first quarter of the fiscal year) was 538 million euros (approximately 908.1 billion won), com…
Ryanair shares fall after Q1 profit misses forecasts; CEO cites Middle East tensions
By Rajwa Quasim Ryanair holdings share fell more than 6% as it missed market expectations of first-quarter net come than the forecast due to rising prices for its unhedged fuel and declining ticket fares amid ongoing Iran war. The low-cost airline generated net income of €538 million ($615.3 million) during the quarter, fell from the €820 million in the same period last year — a decline of 34.4%. The analysts forecasted €579 million. Although to…
The first Ryanair figures were eagerly expected since the start of the kerosene crisis – and the profit was even more dramatic than feared. The low-cost airliner has a decisive advantage over Lufthansa and other industry giants.
Ryanair's profit collapses by 34%. In particular, the conflict in the Middle East has caused a surge in fuel prices and a drop in average tariffs. In the first quarter of the fiscal year (April-June), the company recorded a profit net of taxes of 538 million euros. In the same period of [...] The article Ryanair, the conflict in the Middle East hits profits: 34% collapse comes from Il Fatto Quotidiano.
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