Ryanair has reported a 34% drop in quarterly profits after rising fuel costs and lower air fares weighed on earnings, despite carrying more than 61 million passengers between April and June.
The airline posted a pre-tax profit of €538 million for the first quarter of its 2027 financial year, down from the same period last year. Ryanair said the decline was mainly due to soaring fuel costs on the portion of fuel not covered by hedging contracts, together with a 6% reduction in average fares amid the ongoing conflict in the Middle East and more cautious consumer demand.
Despite the fall in profits, the airline carried 61.3 million passengers between April and June, a 6% increase compared with the same period in 2025.
Revenue rose by 1% to €4.38 billion, driven by higher passenger numbers, although lower ticket prices limited overall growth. Additional income from services such as baggage and seat selection increased in line with passenger traffic.
Fuel costs hit earnings
Operating costs climbed 11% to €3.81 billion, largely because fuel prices for the airline's unhedged purchases almost doubled during the quarter.
However, Ryanair said it has already secured 80% of its fuel requirements for the 2027 financial year at an average price of around $67 per barrel, helping to protect the airline against further volatility in energy markets.
Debt-free and expanding
The airline also announced it has repaid its final €1.2 billion bond, leaving the company debt-free.
Ryanair currently holds more than €2.8 billion in cash and says it will continue its share buyback programme while investing in new Boeing 737 MAX-10 aircraft and returning money to shareholders through dividends.
Looking ahead
Ryanair is maintaining its forecast of carrying 216 million passengers during the current financial year, representing a 4% increase on the previous year.
The airline cautioned, however, that profits will continue to depend on several factors, including fuel prices, last-minute booking trends and the geopolitical situation.
As part of its expansion plans, Ryanair has confirmed the opening of three new bases in Rabat (Morocco), Tirana (Albania) and Trapani (Italy), along with the launch of 130 new routes for the 2026 summer season.
The airline says it will also continue shifting capacity towards airports with lower taxes and operating costs as it seeks to maintain its competitive fares.
