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Ryanair pre-tax profits fall 34% amid Iran war-linked fuel costs

The airline said passenger numbers rose 6% to 6.1 million between April and June, but fares fell 6% as it cut prices to spur demand.

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Ryanair reported a sharp drop in profits as war-linked uncertainty in the Middle East pushed up jet fuel costs and held back bookings, with customers reportedly more hesitant to fly. The Irish carrier said its pre-tax profits fell 34% to €593 million between April and June, while sales were flat.

Ryanair attributed the cost pressure to rising fuel prices after the United States and Israel launched strikes against Iran in February. He said Brent crude moved above $90 a barrel, and that jet fuel expenses more than doubled for portions of fuel not covered by hedging deals.

To support demand, Ryanair cut fares, and the company said it expects summer fares for July through September to be slightly lower than last year. It cited “consumer hesitancy” around air travel, and warned that full-year results will be highly sensitive to external factors, including conflict escalation and the price of unhedged jet fuel.

The company also reported that passenger numbers increased 6% to 6.1 million, helped by the Easter holiday in April, but fares dropped 6% as it reduced ticket prices. BBC Business reported Ryanair’s finance chief, Neil Sorahan, said Mediterranean flights remain full, with travelers still keen to travel but booking later than normal.

Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%

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