Business · Companies · 2 hrs ago
Ryanair's quarterly profit falls 6% as Middle East war raises fuel costs
Ryanair's profit after tax fell 6% in the three months to the end of September, the airline said on Nov.
2.
The Dublin-based carrier reported 1.61 billion euros, down from 1.72 billion euros a year earlier.
The Middle East war pushed up fuel costs and made customers more hesitant to book, Ryanair said.
Passenger numbers grew 5%, but average fares fell 2% as more travelers booked later.
Ryanair expects its fuel bill to rise by 2 billion euros in its next financial year, and says fuel prices could stay high into 2027 if the conflict continues.
The company says it may respond with cost cuts, including temporary pay freezes, lower cabin crew ratios and more use of AI in office work.
Ryanair has not given full-year profit guidance, saying its outlook depends on conflicts, fuel prices and other factors; it also announced winter schedule cuts last month.
Ryanair said its second-quarter net profit fell 6% as the Middle East war raised fuel costs and affected ticket prices.
Profit after tax was 1.61 billion euros in the three months to the end of September, down from 1.72 billion euros a year earlier.
Passenger traffic grew 5%, but fares fell 2% as the war contributed to consumer hesitancy and later bookings.
Revenue rose 4% to 5.7 billion euros.
Chief executive Michael O'Leary said the airline's fuel bill is expected to rise by 2 billion euros in its next financial year.
- Who
- Ryanair, the Dublin-based airline.
- What
- Its second-quarter net profit fell 6% to 1.61 billion euros. Higher fuel costs and lower fares affected results.
- When
- The results were announced on Nov. 2. They cover the three months to the end of September.
- Where
- Dublin, Ireland; Ryanair operates mainly across Europe.
- Why
- The Middle East war drove up fuel costs and contributed to consumer hesitancy and later bookings.
This story does not have two clearly opposing sides.
Ryanair announced it would reduce its winter schedule in response to higher fuel costs.
Ryanair reported that second-quarter profit fell 6% and said the Middle East war had driven up fuel costs.
O'Leary said the airline's fuel bill was expected to rise by 2 billion euros in its next financial year.
- Second-quarter profit
- 1.61 billion euros, down from 1.72 billion euros a year earlier
- Passenger traffic
- Up 5% in the second quarter
- Fares
- Down 2% in the second quarter
- Revenue
- 5.7 billion euros, up 4%
- Expected fuel-bill increase
- 2 billion euros in Ryanair's next financial year
What people are saying
Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027.
highly sensitive to... conflict escalation in the Middle East and Ukraine