O'Leary explains Ryanair's one-third profit drop from Iran war

Ryanair received approval for a €50m expansion at Shannon Airport, including its largest aircraft maintenance facility in Ireland. The project will create 400 jobs and a training academy for 80 apprentices, with plans to train 400 mechanics by 2031. Construction is set to begin early next year, according to the company.

Ryanair is investing US$900m in Birmingham Airport, adding a ninth aircraft and five new routes for Winter 2026. The airline is offering £29.99 flights to celebrate, but warns these deals will sell quickly due to high fuel prices. Birmingham Airport is also undergoing a £2bn transformation to double flights and passenger numbers. Ryanair's chief marketing officer cites a good relationship with the airport and growing demand for the new destinations.

Ryanair CEO Michael O’Leary anticipates a 20% rise in European airfares over the next year due to higher oil prices from Middle East conflict. Ryanair, 85% unhedged against fuel price increases, may face pressure on profit margins. The airline plans to reduce operations in France and Belgium due to higher taxes. Ryanair shares dropped 2.2% in Dublin trading, down about 25% year-to-date. The company expects its first Boeing 737 Max 10 aircraft in January.

Ryanair CEO Michael O'Leary warned European airfares may rise 10-20% in the next year due to higher fuel costs and reduced seat availability. Ryanair has hedged 80% of fuel through March 2027 at $67/barrel and 15% for next year at $85/barrel, while spot prices are about double. The company will cut 20 routes and 1 million seats from Belgium due to a tax increase. O'Leary also mentioned potential Boeing 737 MAX 10 deliveries in early 2027, depending on U.S. certification.

Ryanair CEO Michael O’Leary predicts European air fares could rise 10-20% in 2027 due to higher jet fuel costs from the Middle East conflict, according to a news conference. Ryanair is 85% unhedged for 2027, with fuel costs at 15% hedged at $85/barrel, while spot rates are around $170/barrel. EasyJet reported a £105m annual rise in fuel costs and has cut 700,000 seats from its winter schedule.

Ryanair is being offered a £67m grant to establish an engine maintenance facility in Northern Ireland, potentially creating 600 jobs. The subsidy includes £30m from the NI Enhanced Investment Zone, £10m from the Department for the Economy, and £27m from the UK government. Ryanair plans to bring engine maintenance in-house at two facilities starting in 2029, with Northern Ireland competing against Spain and Poland for one location.