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Ryanair and EasyJet profits fall as fuel costs stay elevated amid conflict
Ryanair cut fares to stimulate demand, sending quarterly revenue up 1% to €4.4 billion while pre-tax profit dropped 34%.
Europe’s budget airlines are reporting sharp profit declines as higher fuel costs persist, with Yahoo Finance pointing to the US-Iran conflict as a key driver pushing jet fuel prices higher.
EasyJet said its pre-tax profit fell 70% to £85 million in April to June, citing rising fuel costs and later bookings. Ryanair reported a 34% drop in pre-tax profits to €593 million over the same period, while sales were flat, as it cut fares to encourage demand.
Ryanair’s quarterly update showed revenue rising 1% to €4.4 billion, with passenger numbers up 6% to 6.1 million helped by Easter in April. However, fares fell 6% as the airline adjusted pricing amid “consumer hesitancy” around air travel tied to the geopolitical situation.
The outlet also noted that EasyJet’s non-fuel costs were in line with expectations, and that inflight retail within ancillary revenue continued to strengthen, with PBT per seat up 14% year over year in the quarter. Both airlines are effectively balancing fuel pressure against actions meant to support bookings, with investors watching whether elevated jet fuel costs continue to weigh on airline profitability.