Ryanair Q1 profit falls 34% as fuel costs rise

Ryanair reported a sharp decline in first-quarter profit, missing analyst expectations, as a significant increase in unhedged fuel costs and lower average fares pressured its bottom line despite higher passenger traffic. The budget airline announced on Monday, July 20, 2026, that its after-tax profit for the fiscal first quarter ending June 30 fell to 538 million euros, a 34% drop from 820 million euros in the same period last year and below the 579 million euro forecast from a company-compiled analyst survey.

The profit slump was driven by two main factors. First, the cost of the 20% of its jet fuel needs that were not protected by hedging contracts more than doubled during the quarter, exceeding 150 euros per barrel. This contributed to an 11% rise in total operating costs, which reached 3.81 billion euros. Second, average fares declined by 6% year-over-year. Group Chief Executive Michael O'Leary attributed the weaker pricing to consumer hesitancy stemming from the Middle East conflict, concerns over potential jet fuel shortages in Europe, broader economic uncertainty, and a trend toward later bookings.

Passenger traffic remained robust, increasing 6% to 61.3 million...