Ryanair has cautioned over rising costs from soaring fuel prices and said fares are unlikely to grow over the key summer months amid consumer uncertainty caused by the Iran war. The Irish carrier stated it had been expecting low single-digit increases in air fares during its peak season, but is now observing pricing trends that are "broadly flat" between July and September.
Economic Uncertainty and Fuel Costs
The group noted: "Pricing in recent weeks has eased somewhat in response to economic uncertainty caused by higher oil prices, the fear of fuel shortages and the risk of inflation adversely impacting consumer spending." While Ryanair has secured pricing for 80% of its jet fuel needs, the cost of the remaining 20% has "spiked" due to the Middle East conflict. The airline cautioned that if prices remain at current levels, its costs could jump by a "mid-single digit" percentage in the 2026-27 financial year.
Profit Announcement and Future Outlook
Ryanair posted an after-tax profit of 2.26 billion euro (£1.96 billion) for the year to March 31, which is slightly better than anticipated. However, it said it was "far too early" to provide an outlook for the new financial year given the uncertainty over demand and fuel prices.
Jet Fuel Shortage Fears
There have been concerns that jet fuel could run short, forcing travel companies to cancel flights. The price of jet fuel has skyrocketed by more than 80% in a matter of weeks since the onset of the Iran conflict. Hundreds of flights have already been cancelled ahead of the busy summer season.
