Ryanair Reports Record Profit Amid Middle East Fuel Volatility

Ryanair reported a record annual after-tax profit of 2.26 billion euros for the fiscal year ending March 2026, representing a 40% increase. Despite the growth, the airline has suspended its 2027 financial year guidance, citing significant uncertainty regarding fuel prices, rising wages, and an expected increase in EU environmental taxes to approximately 1.4 billion euros.

Chief Executive Michael O'Leary attributed current economic instability to a conflict in the Middle East and Iran's blockade of the Strait of Hormuz, which triggered a jet-fuel supply shock. While O'Leary dismissed fears of immediate summer fuel shortages—noting that Europe has secured alternative supplies from Norway, the Americas, and West Africa—he warned that high fuel prices remain a challenge. The airline has hedged 80% of its fuel requirements at $67 per barrel, but noted that unhedged costs could raise unit costs by a mid-single digit percentage in 2026-27.

To maintain demand amid consumer caution, Ryanair is discounting some summer fares, though Finance Chief Neil Sorahan noted that passengers booking closer to departure dates may encounter higher prices. O'Leary cautioned that if fuel costs remain elevated, weaker rivals such as Wizz Air and airBaltic could face collapse this winter. Separately, the company is finalizing a contract extension for O'Leary through 2032, including 10 million share awards tied to profit and share price targets.