Ryanair says 'no shortage' of travelers despite Iran war denting profit - CNBC

What the report says

CNBC reported that Ryanair’s profit after tax fell 34% in its April-to-June quarter, as the airline cut fares to encourage bookings while fuel costs rose during the Middle East crisis. The Irish low-cost carrier posted profit after tax of €538 million, compared with €820 million a year earlier. Its shares were down 6.8% in the report, though still nearly 5% higher for the year.

According to the company, fares were 6% lower, while operating costs increased 11% to €3.81 billion. Ryanair said 20% of its fuel was not hedged and was exposed to sharp price increases; the cost of that unhedged fuel more than doubled in the quarter. The airline said it is 80% hedged for jet fuel in 2027 at $67 a barrel and 15% hedged for 2028 at $85 a barrel, which CEO Michael O’Leary described as a buffer against oil-market volatility.

Ryanair executives said demand has not disappeared, but customers have been booking closer to departure after concerns about the Iran war, possible European jet-fuel shortages and broader economic uncertainty. CFO Neil Sorahan told CNBC the airline had more than 715,000 passengers flying that day and said there was no lack of bookings or travelers, only later purchasing behavior.

The update matters for the wider European airline sector because Ryanair warned that weaker carriers could face a tough winter if high fuel costs and soft pricing persist. The company declined to give meaningful full-year profit guidance, saying second-half visibility remains limited and results are sensitive to geopolitics, including developments in the Middle East and Ukraine.