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Ryanair Cuts Passenger Target as Iran War Raises Fuel Costs

Ryanair Cuts Passenger Target as Iran War Raises Fuel Costs
Ryanair is giving up 2 million passengers to save €100m: What the Iran war is doing to European air travel · easterneye.biz

Ryanair is a large airline that usually tries to carry more passengers every year.

It now plans to carry two million fewer passengers than previously expected.

This is not because people have stopped wanting to fly.

Instead, fuel has become much more expensive after the Iran conflict.

Some winter flights could lose money if tickets are cheap but fuel is costly.

Ryanair will keep fewer extra flights in the air to avoid those losses.

The change could save the airline between €70 million and €100 million.

Ryanair is still carrying many passengers, including 22.2 million in August.

However, it expects to make less money than during its record-profit year.

Key facts

Revised passenger target
214 million passengers, down from 216 million.
Estimated winter savings
Between €70 million and €100 million.
Fuel price exposure
Ryanair has hedged about 80% of its fuel needs through March at approximately $67 a barrel; the remaining 20% is exposed to market prices.
Recent passenger volume
22.2 million passengers in August, up 6% year over year.
August load factor
96%.
First-quarter profit
€538 million after tax, down 34% from a year earlier.
Previous annual record profit
€2.17 billion.

Sources

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