Ryanair reported a 36% drop in profit for the first quarter of 2026 as rising jet fuel prices began to take their toll. The budget airline had previously insulated itself from rising fuel prices by fixing its energy costs on hedged contracts. However, Ryanair stated that the cost of the 20% of its jet fuel that it had not hedged more than doubled in the first quarter of this year, reaching $150 per barrel. Consequently, the firm’s operating costs surged by 11% to €3.8 billion in the three months to June.
The airline, which is listed in Dublin and New York, announced in May that it would discount some of its fares to boost volumes to contend with lower demand caused by the Middle East conflict. Traffic jumped 6% in the first quarter of this year, but lower fares meant that the airline’s revenue slipped by 1% to €4.3 billion during the period.
Airlines have warned that fears over travel disruptions caused by the Iran war are causing holidaymakers to book at the last minute, hampering the ability of carriers to plan ahead.
