# Ryanair profit slump deepens as fuel costs soar

> Live situation record from CLSTR: https://clstr.news/situations/ryanair-earnings-and-fare-outlook-2026
> Updated: 2026-08-07T14:33:16.000Z. Sources: 74. Developments: 4.

Ryanair’s earnings pressure persisted into the second quarter of fiscal 2026/27. After reporting a 34% drop in net profit to €538 million for the quarter ended 30 June, the carrier confirmed a further 34% plunge in pre-tax profit to €593 million for the April-June period, prompting it to suspend its financial outlook for the remainder of 2026.

Operating expenses remained 11% higher year-on-year, driven largely by a near-doubling of unhedged jet-fuel costs, while the airline’s 80% fuel-hedging programme covered only part of the increase. Average fares were again cut about 6% to support demand amid lingering consumer hesitation linked to Middle-East tensions, notably the conflict in Iran that pushed crude above $90 per barrel. While load factors remained robust, revenue per passenger fell.

Despite these financial headwinds, Ryanair demonstrated passenger growth in July 2026, transporting 22.2 million people—a 7% increase year-on-year—with a 96% average load factor. Morgan Stanley also upgraded its outlook on the carrier, raising its 12-month target price to €27.60 and maintaining an "overweight" rating, citing Ryanair's low-cost structure and strong market position.

Concurrently, the broader Irish aviation sector faced difficulties. Aer Lingus reported an operating loss of €34 million for the first half of 2026, citing higher fuel and carbon costs alongside intensified competition on North Atlantic routes.

## Timeline

### 2026-08-07: Ryanair reports 7% passenger growth in July 2026

Ryanair transported 22.2 million passengers in July 2026, a 7% year-on-year increase, maintaining a 96% load factor across more than 120,800 flights.

3 sources. https://clstr.news/cluster/ryanair-reports-7-passenger-growth-in-july-2026

### 2026-07-31: Irish airlines report deep losses and profit drop in H1 2026

Aer Lingus posted a €34 million H1 loss and Ryanair’s profit fell 34% to €593 million, both blaming higher fuel costs and competition, with Ryanair suspending its 2026 forecasts.

2 sources. https://clstr.news/cluster/irish-airlines-report-deep-losses-and-profit-drop-in-h1-2026

### 2026-07-20: Ryanair profit falls 34% as fuel prices surge and fares slip

Ryanair's Q1 profit fell 34% to €538 m as un‑hedged fuel costs surged and average fares dropped 6%; revenue rose 1% to €4.38 bn and passengers rose 6% to 61.3 m.

67 sources. https://clstr.news/cluster/ryanair-warns-of-modest-fare-dip-and-profit-shortfall-amid-middle-east-conflict

### 2026-06-22: Morgan Stanley raises Ryanair target price to €27.60

Morgan Stanley lifted Ryanair's target price to €27.60 from €25.50 and kept an overweight rating, citing robust demand and low‑cost advantages, while noting fuel and economic risks.

3 sources. https://clstr.news/cluster/lloyds-energy-evaluates-lng-and-regasification-projects-in-emerging-markets

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Cite as: Ryanair profit slump deepens as fuel costs soar. CLSTR, https://clstr.news/situations/ryanair-earnings-and-fare-outlook-2026