Ryanair profits drop as Iran war puts off passengers and lifts fuel costs
Ryanair reported a 34% drop in quarterly profits as rising fuel costs and consumer hesitancy linked to Middle East conflict impacted travel demand. The airline warned that future financial performance remains highly sensitive to geopolitical instability and oil price volatility.
Why it matters
The airline's struggles highlight how regional geopolitical conflicts can trigger global economic ripple effects, specifically impacting the aviation industry and energy markets.
Image source, iStock Editorial / Getty Images Image caption, Ryanair said it had to cut fares due to customer hesitancy around air travel due to the Middle East conflict
Ryanair's profits have fallen sharply as war in the Middle East sent jet fuel prices soaring and customers reluctant to book flights.
The Irish airline's pre-tax profits dropped 34% to €593m (£503m) between April and June while sales were flat as the company was forced to cut fares to stimulate demand.
Ryanair also said it expects summer fares to be slightly lower than last year due to "consumer hesitancy" around air travel .
The price of fuelling a plane has jumped since the US and Israel launched strikes against Iran in February and while Ryanair said it had "hedged" or struck deals for the most future fuel costs, those not included in these arrangements had more than doubled.
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