Ryanair Net Profit Drops 15% to 2.15 Billion Euros Amid Soaring Fuel Costs
Ryanair posted a 15% drop in net profit to 2.15 billion euros for the first half of its fiscal year amid soaring fuel costs and a slowdown in growth, prompting the airline to trim its annual targets and cut expenses.
Ryanair has reported a 15% drop in net profit to approximately 2.15 billion euros for the first half of its fiscal year, despite handling a record 125.8 million passengers and maintaining a 95% load factor. The airline's financial results reveal mounting cost pressures driven by soaring jet fuel prices and regional instability in the Middle East, which has kept the carrier out of Ben Gurion Airport since May 2025.
October figures indicate a significant cooling in growth, with passenger numbers rising by just 1% year-on-year to 19.4 million. The average ticket price fell 4% to 55.7 euros due to passenger hesitation, while operating expenses surged 10% to roughly 7.7 billion euros. CEO Michael O'Leary warned of an upcoming "cost cliff" as jet fuel prices hover near 170 dollars per barrel, with unhedged fuel purchases compounding the financial burden.
To counter the headwinds, Ryanair has trimmed its annual passenger target to 214 million and is considering freezing wages, reducing cabin crews, and expanding artificial intelligence applications. O'Leary also defended the airline's decision to forgo Starlink satellite internet installation, citing aerodynamic drag that would increase fuel consumption by 2% and cost the carrier hundreds of millions annually.
Despite these challenges, Ryanair maintains a robust financial position with 2.6 billion euros in cash and debt-free ownership of its 620 aircraft. The airline is banking on future deliveries of the Boeing 737 Max 10 starting in early 2027 to drive expansion toward a target of 300 million annual passengers by 2034.
