Irish no-frills airline Ryanair on Monday said net profit dropped 6% in its second quarter (Q2) as the Middle East war drove up fuel costs and impacted ticket prices.
Profit after tax fell to €1.61 billion (US$1.8 billion) in the three months to the end of September, from €1.72 billion one year earlier, the Dublin-based carrier said in a statement.
Ryanair, which is Europe’s biggest airline by passenger numbers and flies mainly across the continent, said the cost of fuel not subject to advance purchase agreements had soared owing to the US-Iran war.
“Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027,” said chief executive Michael O’Leary.
O’Leary said Ryanair’s fuel bill is expected to rise by €2 billion in its next financial year, which could prompt cost-saving measures such as temporary pay freezes, lower cabin crew ratios and greater use of AI in back-office operations.
While passenger traffic grew 5% in Q2, fares fell 2% as the war led to consumer hesitancy and later bookings.
Revenue increased 4% to €5.7 billion.
O’Leary said it was too early to provide full-year profit guidance, which remains “highly sensitive to… conflict escalation in the Middle East and Ukraine,” fuel prices, macroeconomic shocks and European air traffic control strikes.
Ryanair announced last month it would reduce its winter schedule in response to higher fuel costs.
