Ryanair has reported a 34% drop in pre-tax profits, falling to €593m during the April to June period. The Irish carrier attributed this financial decline to the ongoing conflict in the Middle East, which has significantly increased jet fuel prices and dampened passenger demand.
To encourage bookings, the airline was compelled to lower ticket prices, keeping sales flat. Ryanair anticipates that summer fares will remain lower than those seen last year, citing consumer wariness toward air travel. While the company secured some fuel prices through hedging, the cost of unhedged fuel more than doubled following military actions involving the US, Israel, and Iran.
Global oil prices have surged, with Brent crude rising by 2.5% as supply routes like the Strait of Hormuz face disruption. Market analysts warn that further escalations in the Middle East could drive oil prices toward $150 per barrel. Ryanair has cautioned that its full-year financial outlook remains susceptible to external geopolitical instability and volatile energy costs.
