Ryanair Profits Drop 15% as Fuel Costs Surge
Ryanair reports a profit decline to €2.15 billion and warns of rising European airfares by 2027 due to surging jet fuel costs.
The airline Ryanair reported a 15% decline in first-half profit to €2.15 billion for the period ending September 30. The company attributed the dip to a 4% drop in average fares and a doubling in the price of unhedged jet fuel. Management warned that insufficient hedging for the summer of 2027 could increase the airline's fuel bill by approximately €2 billion in the year starting April 2027.
To offset these expenses, Chief Executive Michael O’Leary is considering temporary pay freezes for management, pilots, and cabin crew. The airline also plans to implement leaner crewing ratios and increase its use of artificial intelligence. O’Leary predicts that capacity reductions and fuel costs will lead to record increases in European short-haul airfares by summer 2027.
Ryanair is shifting its operational capacity away from high-tax markets, including the United Kingdom, Belgium, France, and Germany, toward countries with lower or no aviation taxes, such as Sweden, Slovakia, and regional Italy. Despite the profit decline, the airline expects to grow traffic to approximately 220 million passengers next year, aided by the delivery of new Boeing 737 MAX 10 aircraft.
