Overview
- Ryanair reported on Monday that after-tax profit for the six months to September fell 15% to €2.15 billion despite a 3% rise in revenue and a 6% rise in passenger numbers.
- The group said it has about 80% of fuel hedged to March 2027 at roughly $67 a barrel and only about 25% hedged for the following 12 months at around $95 a barrel, leaving it exposed to an estimated €2 billion rise in its fuel bill if forward prices hold.
- Management is reviewing wide-ranging cost measures, including temporary pay freezes, renegotiating airport deals, lower cabin-crew ratios and greater use of artificial intelligence to cut operational and back-office costs.
- Ryanair warned that short-haul fares across Europe will likely rise by double-digit percentages next year as airlines pass on higher fuel costs and the carrier has already trimmed its passenger target and winter schedule to limit exposure.
- The fuel shock highlights a wider industry risk because many European carriers’ hedges roll off next year which could tighten capacity, push fares higher and squeeze household travel budgets and airline workforces.