Ryanair eyes cost cuts as it faces a €2 billion rise in its fuel bill next year
One of Europe's biggest airlines saw its first-half profit fall 15% as higher fuel costs and lower fares outweighed passenger growth.
Ryanair anticipates a €2 billion increase in fuel expenses for the upcoming financial year, as reported in its first-half earnings. The airline's profit for April to September 2026 was €2.15 billion, a 15% decrease from the same period last year. Despite a 6% rise in passenger numbers and a 3% surge in revenue to €10.08 billion, fares fell by 4%.
The Middle East conflict has deterred consumers from booking in advance, leading to a later booking trend. While Ryanair has hedged 80% of its fuel needs, the remaining 20% saw a doubling in price, threatening to raise its fuel bill by €2 billion. CEO Michael O'Leary predicts elevated fuel prices could persist into 2027 unless the Middle East conflict is resolved.
To cope with these costs, Ryanair is considering cost-cutting measures like temporary pay freezes, reduced crew-to-passenger ratios, and increased use of AI. Additionally, the airline has launched an €800 million share buyback program, set to run until February 2028. However, the company has not yet provided a full-year profit forecast due to uncertainties surrounding conflicts, fuel prices, the broader economy, and European air traffic control disruptions.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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