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Ryanair Posts Record Profit but Warns Summer Fares Will Stay Flat

Strong fuel hedges have protected results while unhedged fuel exposure and late bookings leave the summer demand and cost outlook uncertain.

Overview

  • On Monday, May 18, Ryanair reported a record €2.26 billion after-tax profit for the year to March and revised its July–September fares forecast to ‘‘broadly flat’’.
  • Ryanair has hedged roughly 80% of its jet fuel needs but says the remaining 20% has ‘‘spiked,’’ creating exposure that could raise operating costs by a mid-single-digit percentage in 2026–27.
  • The airline’s CFO said suppliers are redirecting fuel from West Africa, the Americas and Norway and that the immediate risk of shortages is receding as refiners increase output.
  • Carriers are seeing more last-minute bookings, which reduces demand visibility and means passengers who delay booking could face higher last-minute prices.
  • Background to the spike is the effective closure of the Strait of Hormuz after the Iran war, a shock that pushed oil and jet-fuel prices higher and prompted IEA warnings about Europe’s limited jet‑fuel stocks.