Ryanair’s Q2 Profit Plummet Amid Middle‑East Sky‑Fueling War

Sun Sep 06 2026 03:03:31 GMT+0000 (Coordinated Universal Time)

A sharp 34% fall in pre‑tax profits as jet fuel costs surge, passenger demand wavers, and summer fares edge lower for Ryanair.

Ryanair reported a 34% dip in pre‑tax profit to €593 million, driven by soaring fuel prices triggered by the Iran conflict and subdued passenger bookings. While revenue rose 1 % to €4.4 bn, fares fell 6 % in the first half and the airline warns that its 2026 results will remain volatile in the face of Middle‑East tensions, the Ukraine war and unhedged fuel costs. Despite a modest lift in passenger numbers, the Irish budget carrier’s share price slid and executives predict a slightly lower fare environment for July‑September travel. Ryanair’s finance chief noted that holiday flights stay full, though customers book later.

Ryanair’s profit fell sharply in the second quarter as jet fuel prices soared following the Iranian conflict, and customers are hesitant to book flights.

Pre‑tax earnings slid 34 % to €593 million between April and June, even though revenue only ticked up 1 % to €4.4 bn. The airline trimmed fares to attract bookings, which dropped 6 % as travelers stayed away amid growing concerns about Middle‑East hostilities.

Fuel costs surged after the US and Israel struck Iranian targets in February. Ryanair had hedged most future fuel purchases, but unprotected quantities more than doubled, pushing the price of jet fuel to historic highs. The price of a barrel of crude oil briefly hit $90, spiking the cost of aviation fuel.

The Strait of Hormuz, a critical oil corridor, slowed traffic, creating a spike in prices that resumed after a brief cooling period following a temporary peace accord. Ryanair warned that its annual results will be "highly sensitive" to escalating conflicts in the Middle East and in Ukraine, as well as to unhedged fuel cost fluctuations.

Summer fares for the July‑to‑September period are expected to be modestly lower than the previous year, with customers typically booking closer to departure time. Finance chief Neil Sorahan said flights on Mediterranean routes remain full, but consumers book "just a little bit later."

Although passenger numbers rose 6 % thanks to an Easter holiday surge, share prices fell 5 % on Monday, reflecting market uncertainty. Investment director Russ Mould noted that Ryanair remains better positioned than many rivals, yet the lingering conflict still casts a challenging future for the airline and the travel sector.