Ryanair profit slumps 34% as airlines brace for a 'difficult winter' amid Middle East crisis - CNBC
Ryanair reported a 34% drop in quarterly profits as geopolitical tensions in the Middle East caused consumer hesitancy and delayed bookings. Despite high passenger numbers, the airline faced increased operating costs and lower ticket fares.
Why it matters
The airline's performance serves as a bellwether for the broader European travel industry and highlights the economic impact of regional conflicts on consumer behavior.
Ryanair warned on Monday that struggling European airlines are facing a "difficult winter" ahead, as the budget carrier reported first-quarter profit that took a 34% hit due to consumers delaying bookings amid the Middle East crisis
The airline saw its profit after tax in the April to June quarter fall to 538 million euros ($615.3 million), down from 820 million euros the previous year.
Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%. Operating costs also rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled in the quarter.
Shares were last seen down 6.8%. The stock is up nearly 5% this year.
The company's jet fuel for 2027 is currently 80% hedged at $67 per barrel, and 15% hedged for 2028 at $85 per barrel.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in