Ryanair’s Q2 profits tumbled amid a spike in jet fuel costs fueled by the Iran conflict

Ryanair’s pre‑tax profit fell 34 % to €593 m over the April‑June period as the Middle East war pushed jet fuel prices higher and made travellers hesitant to book flights. The carrier’s revenue rose just 1 % to €4.4 bn, with passenger numbers increasing by 6 % to 6.1 million, a modest rise largely driven by Easter travel.

The surge in crude prices—reaching $90 a barrel after U.S. and Israeli strikes on Iran—caused flight fuel costs to double for items not covered by Ryanair’s hedges. Despite having hedged some future fuel contracts, un‑hedged costs made aviation more expensive and eroded profit margins.

Ryanair’s finance chief Neil Sorahan said its Mediterranean routes remained full, with customers still eager to travel but opting to book closer to departure. “People are as keen to get away as ever, albeit booking just a little bit later,” he noted.

Fares for the July‑September summer period are expected to be modestly lower than last year, as Ryanair shifts its marketing strategy to counter consumer hesitancy. The airline highlighted that its year‑end results will be highly sensitive to any escalation in the Middle East or Ukraine, plus the volatility of unhedged fuel prices.

The stock fell 5 % on Monday, and investment director Russ Mould warned that the current turbulence is “unhelpful” and that its visibility is akin to “a fog‑set airport.” He predicts the travel industry will face continuing challenges until a lasting resolution emerges.