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Ryanair profit slides as unhedged jet fuel costs surge

Rising jet fuel prices lifted operating costs 11.0% to €3.8 billion in the three months to June and pushed pre-tax profit down 36.0% to €593 million.

Reported · Written up by our desk · Energy

OilPrice reports Ryanair’s profit fell more than a third as higher jet fuel prices driven by the Iran war began to flow through results.

The airline previously reduced fuel-price risk through hedged energy contracts, but it said the cost of the 20.0% of jet fuel that was not hedged more than doubled in the first quarter to $150 per barrel.

As a result, operating costs rose 11.0% to €3.8 billion in the three months to June, while pre-tax profit slumped 36.0% to €593 million.

Ryanair also pointed to weaker demand conditions, saying it discounted some fares in May to support volumes amid concerns tied to the Middle East conflict, while first-quarter traffic grew 6.0% but revenue slipped 1.0% to €4.3 billion.

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