Ryanair Q1 Profit Falls 34% to €538 Million as Fuel Spike and War Fears Cut Fares
Updated
Updated · CNBC · Jul 20
Ryanair Q1 Profit Falls 34% to €538 Million as Fuel Spike and War Fears Cut Fares
3 articles · Updated · CNBC · Jul 20
Summary
€538 million in after-tax profit for April-June marked a 34% drop from a year earlier, after Ryanair cut ticket prices to counter weaker summer booking demand.
20% of the airline's fuel book was unhedged, and that exposure hurt as jet fuel costs more than doubled in the quarter; operating costs rose 11% to €3.81 billion while fares fell 6%.
5.6% share decline followed Ryanair's warning that Q2 pricing is still modestly down year on year and that it has no meaningful visibility on second-half earnings.
80% of 2027 fuel is hedged at $67 a barrel, which Ryanair says gives it a cost edge, but it warned profit remains highly sensitive to any escalation in the Middle East or Ukraine.
European rivals could face a difficult winter if fuel stays elevated: industry data showed jet fuel averaging $127 a barrel in the week to July 10, up 41% from a year earlier.