Ryanair Squeezed: Fuel Wars and Flights Pull‑Back

Ryanair, Europe's biggest low‑cost carrier, saw its pre‑tax profit tumble 34% to €593m (£503m) in the first quarter of 2026 as jet‑fuel costs surged from a war‑driven spike in the Middle East. The airline said it had to slash fares to keep travel demand afloat.

From April to June, sales stayed flat while passenger numbers ticked up 6% to 6.1 million – a boost from the Easter holiday – yet fares dipped 6% as customers hesitated amid the conflict. Ryanair expects summer fares to be modestly lower than last year, with many travellers booking close to departure.

Fuel costs have exploded since the US and Israel struck Iran in February. Although the airline had hedged a portion of its future fuel purchases, the un‑hedged haul more than doubled, pushing crude oil to $90 a barrel at its peak.

The Strait of Hormuz traffic ground to a halt, a vital route for global oil supply, and even a brief peace deal could not halt the price volatility. Ryanair warned that its annual outcomes will remain highly sensitive to Middle East and Ukraine tensions.

Investor Russ Mould cautioned that Ryanair’s position is better than many rivals but still fragile if hostilities intensify. “The renewed escalation is unhelpful and could keep travel costs high for a long time,” he said.

Key Takeaway: Ryanair’s profits are under pressure from soaring fuel costs and a cautious travel market, highlighting the broader impact of geopolitical instability on the airline industry.