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Ryanair profit falls as jet fuel costs jump and fares decline
The airline reported a 34% drop in quarterly PAT to €593 million, even as passenger numbers rose 6% and revenue edged up 1% to €4.4 billion.
Ryanair said quarterly profit fell 34% to €593 million as unhedged jet fuel costs rose and ticket prices weakened. The company also reported that fares fell 6% during the quarter, while revenue rose 1% to €4.4 billion, reflecting higher passenger volumes.
In its results, Ryanair linked weaker pricing to a need to stimulate demand amid geopolitical uncertainty, and it expects summer fares to be slightly lower than last year due to “consumer hesitancy” around air travel. Despite the pricing pressure, passenger numbers increased 6% in the quarter, supporting the revenue gain.
A key part of Ryanair’s outlook centers on fuel hedging. Management said about 80% of its fuel requirements through the end of March 2027 are hedged at $67 per barrel, and it hedged an additional 15% of next year’s fuel at $85 per barrel during a recent interim ceasefire.
Ryanair declined to provide a full year profit forecast, citing the impact of close in bookings for the remainder of the summer. The company’s results leave investors weighing whether its cost advantages can offset weaker pricing if the trend continues, according to the Yahoo Finance write-up.