Irish airline Ryanair’s profit falls as oil prices rise

The company has announced that profit after tax for the three months to the end of June was € 538 million, 34% lower than the same period last year at €820 million.

The airline hedged 80% of its jet fuel this year, which prevented costs from rising. However, the remaining 20%, which was not edged, has translated into $150 a barrel, doubling the cost.

War in Iran as well as President Trump’s tariffs have also affected consumers' attitudes towards travelling. 

Ryanair has reduced ticket prices to encourage people to book their flights. Average fares fell by 6%.

On the upside, during Q1, the airline recorded a record 91% customer satisfaction.

Passenger numbers increased, carrying 216 million passengers during the current financial year, an increase of 4%.

“Q1 fares required stimulation as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings,” said Chief Executive Michael O’Leary.

Despite all the uncertainty and challenges, the group expects to remain profitable for the full year. After a final €1.2bn bond was repaid in May, the Group is now debt-free.