Ryanair profit fall of 15% as fuel costs rise

The chief executive says there are three savings options

While revenue still rose 3% to €10.08 billion and passenger numbers climbed 6% to 125.8 million, average fares fell 4% to €55.70 in the first half.

What is behind the Ryanair profit fall

According to Ryanair chief executive Michael O'Leary, jet fuel prices are expected to stay high well into next year.

"Unless there is a swift resolution of the Middle East conflict, we expect jet fuel prices to remain elevated well into 2027," he said.

Ryanair expects short-haul fares to rise materially next year, however it says fares will not fully cover the rise in its fuel bill.

By the year to March 2028, that bill could climb by roughly €2 billion.

But even as the fuel excise cut looks set to survive Budget 2027, rising fuel costs are also squeezing Irish households.

How Ryanair plans to cut costs

According to O'Leary, there are three savings options: tougher airport talks, leaner crewing and more use of AI in back-office work.

Hedging offers some protection too, as Ryanair has hedged 80% of its fuel needs to March 2027 at $67 a barrel.

Meanwhile, next year's hedge has risen to 25% at $95 a barrel, up from 15% at $85.

In its second quarter alone, Ryanair made €1.61 billion after tax.

Usually, thanks to the busy summer season, that quarter banks most of its annual profit, and the figure matched analysts' expectations.

However, the airline's chief executive declined to give full-year guidance, citing the Middle East and Ukraine conflicts, fuel prices and the risk of European air traffic control strikes.

Will Ryanair staff face pay freezes?

Yes, they will.

Ryanair says it may need temporary pay freezes as part of its cost review.

That said, it has not confirmed a timeline or which roles would be affected.

Will Ryanair fares rise next year?

The airline expects short-haul fares to rise materially next year.

But it says the increase will not fully offset an estimated €2 billion jump in its fuel bill.