Ryanair stock slides 6% as higher fuel costs amid Iran war dent profit
Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%. Operating costs also rose 11% to 3.81 billion euros as...
Key points
- Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%.
- Operating costs also rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled in the quarter.
- Ryanair issued conservative guidance for the rest of its financial year, with operating costs highly dependent on the price of its unhedged jet fuel.
- "As is normal this early in the year, we have zero H2 visibility, so it remains far too early to provide any meaningful FY27 PAT guidance." Winter 'failures' coming Ryanair's O'Leary told CNBC in April that if the price of jet fuel continues to remain elevated, its competitors will see "failures." The average price of jet fuel has surged to $127 per barrel for the week ending 10 July, up 41% from the prior year, per the International Air Travel Association's Jet Fuel Price Monitor.
What happened
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Ryanair said 20% of its unhedged fuel was exposed to price spikes, while ticket fares declined 6%. Operating costs also rose 11% to 3.81 billion euros as the price of its 20% unhedged fuel more than doubled in the quarter. Ryanair issued conservative guidance for the rest of its financial year, with operating costs highly dependent on the price of its unhedged jet fuel. "As is normal this early in the year, we have zero H2 visibility, so it remains far too early to provide any meaningful FY27 PAT guidance." Winter 'failures' coming Ryanair's O'Leary told CNBC in April that if the price of jet fuel continues to remain elevated, its competitors will see "failures." The average price of jet fuel has surged to $127 per barrel for the week ending 10 July, up 41% from the prior year, per the International Air Travel Association's Jet Fuel Price Monitor. At the time, the International Energy Agency warned that Europe could run out of jet fuel in a matter of weeks, as the majority of its jet fuel imports came from the Middle East. "I would expect to see much more severe cancelations in the weaker winter season this year than we've seen for a long time across a whole range of airlines if...
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