Ryanair profit slumps 34% as airlines brace for a 'difficult winter' amid Middle East crisis

Ryanair warned on Monday that struggling European airlines are facing a "difficult winter" ahead, as the budget carrier reported first-quarter profit that took a 34% hit due to consumers delaying bookings amid the Middle East crisis

The airline saw its profit after tax in the April to June quarter fall to 538 million euros ($615.3 million), down from 820 million euros the previous year.

Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%. Operating costs also rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled in the quarter.

The company's jet fuel for 2027 is currently 80% hedged at $67 per barrel, and 15% hedged for 2028 at $85 per barrel.

"Q1 fares (which benefitted from a full Easter during April 2025) required stimulation as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings," Ryanair CEO Michael O'Leary, said.

O'Leary added that the company's "conservative hedging policy" insulates it from the volatility of oil prices as the Middle East turmoil continues, giving it a "cost advantage over all other EU competitors," while "unprofitable airlines face a difficult winter."

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