Ryanair Q1 Profit Drops 34% to €593 Million as Fuel Spikes and Fares Fall 6%
Updated
Updated · Yahoo Finance · Aug 10
Ryanair Q1 Profit Drops 34% to €593 Million as Fuel Spikes and Fares Fall 6%
1 articles · Updated · Yahoo Finance · Aug 10
Summary
€593 million in quarterly profit after tax marked a 34% drop for Ryanair, even as revenue edged up 1% to €4.4 billion.
A 6% fare decline and a spike in prices for the airline's 20% unhedged jet fuel squeezed earnings, with Ryanair cutting ticket prices to support demand amid geopolitical uncertainty.
Passenger numbers still rose 6%, but management said summer fares will likely stay slightly below last year's levels because of consumer hesitancy around air travel.
Ryanair said about 80% of fuel needs through March 2027 are hedged at $67 a barrel, plus 15% of next year's needs at $85, helping limit future cost volatility.
The airline withheld full-year profit guidance, saying close-in summer bookings and shifts in consumer sentiment will determine how much the weak first quarter shapes the year.
As travelers delay bookings amid global uncertainty, will Ryanair's slashed summer fares and strategic fuel hedging ultimately save their fiscal year?
With profits plummeting despite rising passenger numbers, could Ryanair's aggressive fare cuts trigger a brutal winter shakeout for weaker European airlines?