Ryanair Warns of a 'Difficult Winter' for Struggling European Airlines
2026-07-20 06:21:52
According to CNBC, Ryanair warned on Monday that struggling European airlines face a difficult winter ahead as the budget carrier reported first-quarter profit that fell 34% amid consumers delaying bookings because of the Middle East crisis. Ryanair's profit after tax in the April to June quarter dropped to 538 million euros ($615.3 million) from 820 million euros a year earlier, while ticket fares declined 6% and operating costs rose 11% to 3.81 billion euros. The airline said 20% of its unhedged fuel was exposed to price spikes, and the price of that fuel more than doubled in the quarter. Ryanair said its jet fuel for 2027 is 80% hedged at $67 per barrel and 15% hedged for 2028 at $85 per barrel. Chief Executive Michael O'Leary said Q1 fares needed stimulation as the Middle East conflict drove consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings. He added that the airline's conservative hedging policy shields it from oil-price volatility and gives it a cost advantage over other EU competitors.
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