Ryanair’s pre‑tax profit dropped 34 % to €593 m (£503 m) between April and June, as jet fuel prices surged following the Iran conflict and customer demand faltered. The carrier had to cut fares to stimulate bookings, keeping revenue only 1 % higher during the same period.

Passenger numbers rose 6 % to 6.1 million, helped by the Easter holiday in April, yet Ryanair reduced fares by 6 % to counter “consumer hesitancy” about flying amid Middle East turmoil. The airline’s CEO, Neil Sorahan, highlighted that Mediterranean flights still run full, but travellers are booking closer to departure.

Fuel costs have more than doubled for unhedged contracts after the US and Israel strikes against Iran. Although Ryanair had hedged future fuel expenses, the surge has put early-season fares slightly lower than last year and made financial outcomes highly sensitive to regional conflict and fuel price fluctuations.

Investment analyst Russ Mould of AJ Bell warned that the renewed escalation in hostilities could lead to continued uncertainty for airlines, as the “visibility is worse than San Francisco airport when the fog sets in.” 

In a broader view, Ryanair faces the dual challenge of maintaining profitability while navigating geopolitical turbulence in the Middle East and conflicts such as the Ukraine war, which may shape the travel landscape in the years ahead.