Ryanair quarterly profit slumps by a third on lower fares, higher fuel costs
It reported after-tax profit of 538 million euros (US$616 million) for its fiscal first quarter through June 30
Published Mon, Jul 20, 2026 · 03:12 PM
[DUBLIN] Ryanair’s profit slumped by a third on higher fuel costs and weaker fares in the three months to the end of June, the airline said on Monday (Jul 20), while summer fares looked set to fall amid consumer nervousness around the Iran war and broader economy.
The weak results for Ryanair, Europe’s largest airline by passenger numbers, are the latest sign that the five-month-old Iran war is being felt more keenly by companies as peace talks drag and oil prices remain elevated.
“The price of our 20 per cent unhedged fuel doubled in the quarter and fares fell 6 per cent, primarily we think due to the impact of the Middle East conflict” and the timing of Easter, chief executive Michael O’Leary said in a video presentation. “Despite a recent, slight, uptick in volumes, and less price stimulation, Q2 pricing is trending modestly down year-on-year,” he added. At its last quarterly results in May, Ryanair said fares could be broadly flat between July and September.
The Irish airline reported after-tax profit of 538 million euros (US$616 million) for its fiscal first quarter through June 30, down 34 per cent from the previous year and short of a forecast of 579 million euros in a company poll of analysts.
Citi analysts said in a note that the airline’s shares looked likely to open down by a low- to mid-single-digit percentage following the miss.
Weakness in fares is likely to be short-lived, however, as European aviation is facing a wave of consolidation and airline failures that will take out capacity, chief financial officer Neil Sorahan said.
“I wouldn’t be surprised to see a number of casualties this winter … there’s a few people very much on the edge,” Sorahan said in an interview.
He said he expected “significant capacity” to be cut in Europe this winter, “which could be positive for pricing,” and a lot more may be taken out in summer 2027. The possible sale of British rival easyJet, which is the subject of a bidding war, could also lead to a reduction in capacity and could trigger a “domino effect” of consolidation in Europe, Sorahan said. Ryanair has not seen any hit to bookings from the heatwaves that have hit Europe in recent months, Sorahan added.
“We’re still flying full loads down to the Mediterranean every day, down to Greece and elsewhere. People as keen to get away as ever, albeit booking just a little bit later,” he said. REUTERS
