Ryanair reported alarming results: the fuel crisis and the war are reshaping the airline industry
20 July 15:33
Ryanair, Europe’s largest airline, reported a sharp drop in profits for the first quarter of fiscal year 2027. Despite an increase in passenger numbers, the company lost a third of its profits due to the rapid rise in jet fuel prices caused by the war in the Middle East.
This was reported by "Komersant Ukrainian", citing Ryanair’s financial report, as well as Reuters, the Financial Times, and Bloomberg.
Ryanair’s profits fell by 34%
According to Ryanair’s quarterly report, the company’s net profit for April–June fell to 538 million euros, compared to 820 million euros a year earlier. This represents a 34% decline.
At the same time, the airline’s revenue grew by only 0.9%—to 4.38 billion euros—while operating expenses increased by 11%, to 3.81 billion euros.
Despite the challenging situation, Ryanair carried 61.3 million passengers, which is nearly 6% more than during the same period last year.
Why Profits Fell
The company explained that the main reason was a sharp rise in the cost of jet fuel.
According to Reuters, the unhedged portion of jet fuel purchases—which accounts for about 20% of Ryanair’s needs—more than doubled in price over the quarter, reaching $150 per barrel.
At the same time, about 80% of the fuel the company needs through March 2027 has already been purchased at $67 per barrel, which partially protects Ryanair from further price spikes.
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The war in the Middle East has changed the market situation
According to the Financial Times, the war in the Middle East was the main cause of the fuel crisis for European airlines.
Before the conflict began, nearly half of the European Union’s jet fuel imports came from this region. Due to supply disruptions, European companies had to urgently seek new suppliers, but they have not yet been able to fully make up for the shortfall.
Analysts at Energy Aspects, cited by the Financial Times, predict that as early as the third quarter, the jet fuel shortage in Europe could reach nearly 600,000 barrels per day.
More Passengers, but Cheaper Tickets
Despite the growth in passenger traffic, Ryanair was forced to sell tickets at lower prices.
As Reuters notes, the average cost of airline tickets fell by about 6% in the first quarter, which also negatively impacted the company’s financial results.
What are the forecasts?
Ryanair CEO Michael O’Leary stated that the company is currently unable to provide an accurate profit forecast for the entire fiscal year.
According to him, future results will depend on developments in the Middle East, the cost of jet fuel, and demand for air travel in Europe.
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