Ryanair warns of higher fuel costs, profit dip and considers pay freezes and AI to cut expenses
Ryanair reported a sharp fall in earnings as jet‑fuel prices surged amid the Middle East conflict. First‑half profit after tax dropped 15% to €2.15 billion, while Q2 profit fell 6% to €1.61 billion. CEO Michael O'Leary said the airline expects a €2 billion increase in its fuel bill for the year to March 2028 and is reviewing cost‑saving steps such as temporary pay freezes, lower crewing ratios and greater use of artificial intelligence, while anticipating fare hikes of up to 20% in 2027.
Why it matters
The higher fuel bill and lower earnings reduce Ryanair's cash generation and may pressure its share price, as investors weigh the impact of cost‑cutting measures and potential fare increases on demand. The company’s limited fuel hedging for the next year (25% at €95/barrel) leaves earnings vulnerable to further price spikes.
Key facts
- 1First‑half after‑tax profit fell 15% to €2.15 billion from €2.54 billion a year earlier. investing.com
- 2Q2 profit after tax fell 6% to €1.61 billion. omanobserver.om
- 3Revenue grew 3% to €10.08 billion in the first half. investing.com
- 4Passenger traffic rose 6% to 125.8 million in the first half. investing.com
- 5The airline expects its fuel bill to rise by €2 billion for the fiscal year ending March 2028. rte.ie
- 6Ryanair plans to review temporary pay freezes, lower crewing ratios and increased AI use to offset higher costs. rte.ie
Summary written by AlphAI AI Desk from 20 of 20 sources. Not investment advice. Figures are as stated by the linked sources.