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Ryanair profits fall by a third to €538m
Ireland🏛️ PoliticsCenter18 hr. ago

Ryanair profits fall by a third to €538m

Ryanair reported a 34 percent drop in profits to €538 million for the first quarter of its financial year, driven by soaring fuel prices and a 6 percent decrease in fares. Despite a 6 percent increase in passenger numbers to 61.3 million and a 1 percent rise in revenue to €4.38 billion, operating costs surged 11 percent to €3.81 billion due to inflated fuel prices. The airline attributed the profit decline to fuel costs that more than doubled compared to the same period in 2025, with 80 percent of its fuel needs already purchased at $67 per barrel. Ryanair has hedged 15 percent of its future fuel requirements at $88 per barrel, leaving the final cost of the financial year dependent on un-hedged fuel purchases. CEO Michael O’Leary noted that fare trends remain modestly downward, and summer performance will hinge on pricing for last-minute bookings.

Ryanair reported a significant decline in after-tax profits, falling by 34% to €538 million for the first quarter of its financial year, which ended on June 30. This marks a sharp contrast to the €820 million profit recorded during the same period last year. The downturn was attributed primarily to a surge in jet fuel costs and a decrease in average fares. According to the airline, first-quarter average fares dropped by 6% compared to the previous year, while operating costs climbed 11% to €3.81 billion. Passenger numbers, however, showed growth, increasing by 6% to 61.3 million, and total revenue rose slightly to €4.38 billion. The company's chief executive, Michael O’Leary, highlighted that the rise in fuel prices was driven by the ongoing conflict in the Middle East, which has created economic uncertainty and affected consumer behavior. He noted that the cost of unhedged jet fuel more than doubled during the quarter, significantly impacting the airline’s profitability. Additionally, O’Leary pointed to reduced fare levels as another contributing factor, citing consumer hesitation due to the geopolitical situation and concerns over potential EU jet-fuel shortages. Ryanair has taken steps to mitigate future fuel costs by securing a portion of its fuel requirements in advance. For the current financial year, the airline has purchased 80% of its fuel needs at a rate of $67 per barrel, equivalent to €58.56. However, the remaining 20% of fuel must be acquired at inflated prices due to the ongoing tensions between the United States and Iran. Looking ahead, the airline has hedged 15% of its fuel needs for the next financial year at $88 per barrel. The final cost for the upcoming financial year, which concludes on March 31, 2027, will hinge on the price paid for the unhedged 20% of fuel. Despite the profit decline, Ryanair confirmed that it has become debt-free following the repayment of its final €1.2 billion bond in May. The airline remains optimistic about carrying 216 million passengers during the current financial year, representing a 4% increase from the previous year. O’Leary emphasized that while summer bookings appear strong, there is still uncertainty regarding passenger booking patterns. Passengers have been booking closer to their travel dates than in prior years, complicating demand forecasting. O’Leary also mentioned that current quarter fares are “trending modestly down” compared to the same period last year. The outcome for the summer season will largely depend on how much passengers who book late will ultimately pay. As the airline navigates these challenges, it continues to monitor market conditions and adjust strategies accordingly. The company remains focused on maintaining its operational efficiency and ensuring customer satisfaction amid evolving economic and geopolitical factors.

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2 reports

TheJournal.ie logoTheJournal.ieIndependentCenterFactual 95Objective 8818 hr. ago
Ryanair profits slump by more than a third as fuel costs soar

Ryanair reported a 34% decline in after-tax profits for the first quarter of its financial year, primarily due to a 6% decrease in average fares and a significant rise in jet fuel costs. The airline's profit after tax was €538 million, down from €820 million in the same period last year. Despite these challenges, passenger numbers grew by 6% to 61.3 million, and revenue increased slightly to €4.38 billion. CEO Michael O’Leary attributed the profit drop to the impact of the Middle East conflict, which caused consumer hesitation and increased fuel costs. He noted that the price of unhedged jet fuel more than doubled during the quarter. Ryanair remains debt-free after repaying its final €1.2 billion bond in May, but O’Leary expressed caution over future demand unpredictability.

Bias read (Center): The article presents factual data about Ryanair's financial performance without overt ideological slant. It reports on corporate financial outcomes influenced by external factors like fuel prices and geopolitical tensions, without taking a clear partisan stance. While the topic involves a major UK/E

Why factuality (95): The article accurately reports Ryanair's Q1 profit decline to €538 million, citing fuel costs and fare reductions as key factors. It aligns with the cross-source consensus, including the 6% fare drop, 11% cost increase, and CEO comments on fuel prices. The data matches the Irish Times report, though

Why objectivity (88): The tone is neutral, presenting facts without overt bias. However, the article uses phrases like 'soaring fuel costs' and 'weaker fares,' which may subtly frame the situation as negative. There is no clear indication of political or ideological leaning.

The Irish Times logoThe Irish TimesIndependent🔒CenterFactual 95Objective 8819 hr. ago
Ryanair profits fall by a third to €538m

Ryanair reported a 34 percent drop in profits to €538 million for the first quarter of its financial year, driven by soaring fuel prices and a 6 percent decrease in fares. Despite a 6 percent increase in passenger numbers to 61.3 million and a 1 percent rise in revenue to €4.38 billion, operating costs surged 11 percent to €3.81 billion due to inflated fuel prices. The airline attributed the profit decline to fuel costs that more than doubled compared to the same period in 2025, with 80 percent of its fuel needs already purchased at $67 per barrel. Ryanair has hedged 15 percent of its future fuel requirements at $88 per barrel, leaving the final cost of the financial year dependent on un-hedged fuel purchases. CEO Michael O’Leary noted that fare trends remain modestly downward, and summer performance will hinge on pricing for last-minute bookings.

Bias read (Center): The article presents factual economic data regarding Ryanair's quarterly performance without overt ideological framing. It reports on corporate financial outcomes influenced by external factors like fuel prices and market trends, without taking a clear partisan stance. While the subject involves a U

Why factuality (95): This article provides detailed and accurate information, matching the first article's reporting on profit decline, fare drops, and fuel costs. It includes specifics about fuel hedging and future cost projections, which add depth without contradicting the first article's core facts. The data is consi

Why objectivity (88): The article maintains a neutral tone, presenting both challenges and future uncertainties. However, it emphasizes the impact of the US-Iran war on fuel prices, which could be seen as slightly more focused on geopolitical causes rather than purely economic factors. This subtle emphasis does not const

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