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Ryanair profit slump deepens as fuel costs soar

Updated 14 times since CLSTR started tracking revisions of this situation.

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2026-09-26 10:44 UTC → 2026-10-03 10:43 UTC · added ~~removed~~

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 much of its requirements at $67 per barrel, market prices for jet fuel have reached approximately $140 to $156 per barrel, exacerbated by geopolitical tensions in the Middle East. To mitigate seasonal losses, Ryanair has revised its annual passenger guidance downward and confirmed the removal of approximately two million seats from its winter timetable. While the airline previously planned to increase capacity in the Baltic region via Riga, new capacity reductions have been announced for Estonia and Lithuania, totaling 550,000 seats. This 25% reduction in those markets follows a 30% increase in Lithuanian airport charges and rising fees at Tallinn Airport. Additional winter cuts include 700,000 seats in Greece and one million seats across 20 routes in Belgium. CEO Michael O’Leary noted that future decisions depend on oil price stability. While Ryanair does not plan to levy a fuel surcharge, O’Leary predicts competitors may increase airfares by 10% to 20% next summer to offset high costs, noting that loss-making carriers may face bankruptcy as fuel costs remain elevated. Following these cost pressures, Ryanair’s departure from the Azores is expected to impact regional tourism, with potential losses estimated at 160 million euros. This downturn has increased pressure on the Regional Government as business owners criticize the current response and highlight high airline prices.

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