The Irish low-cost carrier said higher costs for unhedged fuel and softer ticket pricing hurt results, while management warned struggling European airlines could face a difficult winter.
Ryanair reported a 34% fall in first-quarter profit as ticket fares declined and higher costs for unhedged fuel hit earnings during the conflict in the Middle East. Profit after tax for the April-to-June quarter fell to 538 million euros ($615.3 million) from 820 million euros a year earlier, while operating costs rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled. The carrier said fares fell 6% and that consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings weighed on demand, even though the quarter benefited from a full Easter in April 2025. Ryanair said 20% of its fuel exposure was unhedged during the quarter, and added that its jet fuel for 2027 is 80% hedged at $67 per barrel and 15% hedged for 2028 at $85 per barrel. CEO Michael O'Leary said Ryanair's conservative hedging policy gives it a cost advantage over other EU competitors as Middle East turmoil continues, and warned that unprofitable airlines face a difficult winter.