Overview
- Ryanair disclosed Monday that its April–June after-tax profit fell 34% to €538 million, short of analyst forecasts and driving a roughly 5–6% drop in the share price.
- The company said the cost of the roughly 20% of jet fuel not covered by hedges more than doubled to about $150 a barrel, which pushed operating costs up about 11%.
- Average fares fell about 6% year-on-year as customers delayed bookings and Ryanair discounted prices to stimulate demand, leaving revenue barely higher despite passenger traffic rising about 6% to 61.3 million.
- Management said its hedging programme covers roughly 80% of 2027 fuel at $67 per barrel and about 15% of 2028 at $85, which cushions most future exposure but leaves the unhedged remainder vulnerable and prompted the company to suspend firm full-year profit guidance.
- Ryanair warned the weaker period could deepen this winter, saying it expects capacity cuts or failures among less resilient European rivals that could eventually support higher fares and reshape the market.