Ryanair hit by fuel costs

Falling fares and soaring fuel prices led to a 34% plunge in Ryanair’s first quarter profit after tax to €538 million.

The Irish airline said it suffered a 6% drop in average fares and a significant spike in unhedged jet fuel prices, which doubled to $150 per barrel.

Despite these challenges, traffic grew by 6% to 61.3 million passengers, and total revenue increased by 1% to €4.38 billion.

Operating costs rose by 11% to €3.81bn, largely driven by higher fuel expenses.

The company repaid its final €1.2bn bond in May, leaving it debt-free, and maintained a strong balance sheet with over €2.8bn in gross cash at the end of June.

Ryanair has hedged 80% of its FY27 jet fuel requirements at $67 per barrel, providing insulation against future price volatility.

FY27 traffic remains on track to grow 4% to 216m passengers (H1 +6% & H2 +2%).