High fuel costs driven by the ongoing Middle East conflict have negatively impacted Ryanair's financial performance in its second fiscal quarter. The budget airline announced on Monday from Dublin that its post-tax profit decreased by six percent, reaching €1.6 billion. When looking at the first half of the 2026/27 fiscal year, the decline in profits accumulated to 15 percent.
The carrier anticipates fuel expenses to be €2 billion higher next year, a factor that has necessitated the introduction of a broad cost-reduction strategy. In an interview, Finance Director Neil Sorahan stated that all options are under discussion, ranging from wage freezes to adjustments in other operational areas. He emphasized that the company must prepare for oil prices to remain elevated over the coming twelve months, requiring stricter budgetary measures.
Specific measures being considered include a review of airport contracts, potential adjustments to on-board staffing levels, and an increased deployment of artificial intelligence. The airline noted that consumer hesitation caused by the Middle East conflict during the first six months led to later booking patterns, which subsequently suppressed ticket prices. However, with fuel costs expected to stay high next year, Ryanair indicated that flight prices will likely rise significantly.
Sources: Der Spiegel.