Ryanair warns flat fares may weigh on profits
Ryanair said consumer anxiety and fuel volatility will erase summer fare growth, while 80% of its fuel needs are hedged at $67 a barrel.
- On Monday, Ryanair warned investors that the US-Iran war and the effective closure of the Strait of Hormuz risk pressuring annual profits, despite reporting a record after-tax profit of £2.26bn for the fiscal year ending March 2026.
- Global jet fuel spot prices have spiked to over $150/bbl due to Middle East conflict disruptions, prompting economic uncertainty that could wipe out any growth in fares during peak summer months.
- Ryanair's conservative hedging strategy, with 80% of FY27 fuel hedged at approximately $67/bbl until April 2027, has insulated Group earnings and widened its cost advantage over EU competitors during this volatile period.
- Group Chief Executive Michael O'Leary, whose contract extension to 2032 has "almost concluded," stated it is "far too early to provide any meaningful FY27 profit guidance" given significant fuel price volatility.
- Chief Financial Officer Neil Sorahan said the airline remains "increasingly confident" that jet fuel supplies will face no disruption as suppliers seek alternatives to Gulf oil, though weaker European carriers face potential failure.
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50 Articles
Ryanair Says Summer Flights Safe — But Late Bookers May Get Hit With Higher Fares
Ryanair has said its summer flights remain secure despite concerns about the fuel market, while warning that passengers who delay booking could end up paying more. The airline's finance chief, Neil Sorahan, said they are now more confident it will avoid any shortage of jet fuel this summer, even though prices and booking habits are changing across the travel industry. Airlines have recently been dealing with uncertainty caused by global politica…
Ryanair Holdings presented on Monday its financial results for fiscal year 2025-2026 (completed on 31 March), reporting a profit after record taxes of 2,260 million euros (before exceptional departures). This figure represents a gain of 40% compared to the previous year, of 1,610 million. For the company these data represent a milestone taking into account the persistent delays in the deliveries of Boeing and the increasing instability in the gl…
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