In brief
Ryanair reported a sharp 34% drop in pre‑tax profits to €593 million during the first half of 2026, driven by a tripling of jet‑fuel costs following the Iran conflict. Although revenue rose marginally, passenger numbers climbed but fares fell to capture demand. The airline’s finance chief noted that Mediterranean routes stayed full, with travellers booking closer to departure, hinting that summer fares may be modestly lower than last year. Analysts warn that future returns will remain highly sensitive to geopolitical volatility and energy price swings.
Ryanair’s profits drop amid Middle East conflict and soaring jet fuel prices
Ryanair’s pre‑tax profits fell 34% to €593 million during the first half of 2026, a sharp decline linked to higher jet‑fuel costs and a drop in passenger demand.
The war in Iran triggered a surge in crude oil prices, climbing to $90 a barrel and doubling the cost of unhedged fuel for the airline. A previously hedged portion of Ryanair’s future fuel costs remained insulated, but the surge hit the company hard.
While revenue rose 1% to €4.4 bn, passenger numbers grew by 6 % to 6.1 million, but fares fell 6 % after the airline cut prices to entice travellers wary of Middle‑East tensions.
Ryanair’s finance chief Neil Sorahan said that bookings for Mediterranean routes stayed full, “people remain eager to travel but book slightly later.” The airline predicts summer fares will be modestly lower than last year, as customers plan trips closer to departure.
Analysts warn that last‑year results will be highly susceptible to external factors such as renewed conflict in the Middle East or Ukraine and volatile jet‑fuel prices. Ryanair shares fell 5 % following the earnings report.
