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Ryanair Profit Dips Amid Soaring Fuel Costs
2 Nov
Summary
- First-half profit dropped 15% due to higher fuel costs.
- Jet fuel prices doubled, impacting airline's financial performance.
- Ryanair reviewing costs and considering pay freezes.
Ryanair, one of Europe's largest airlines, reported a 15% decrease in its first-half profit for the period ending September 2026, with net profit totaling €2.15 billion. This decline occurred as unhedged jet fuel prices doubled and fares fell, even though passenger numbers saw a 6% increase to 125.8 million. Revenue rose by 3% to €10.08 billion.
The airline's operating costs escalated by 10% to €7.69 billion. Ryanair has hedged 80% of its fuel needs for the financial year ending March 2027, which has provided some protection. However, the price for the remaining 20% has doubled.
Looking ahead, Ryanair anticipates its fuel bill could surge by approximately €2 billion in the financial year ending March 2028, based on current market forecasts. CEO Michael O'Leary noted that elevated jet fuel prices are expected to persist well into 2027, especially as cheaper fuel hedges expire.
To counter these rising costs, Ryanair is examining various cost-saving measures. These include temporary pay freezes, adjustments to crew-to-passenger ratios, and enhanced use of artificial intelligence across operations and support functions. An €800 million share buyback program is also planned, commencing in February 2027.
