Irish low-cost airline Ryanair reported a sharp rise in annual profit on Monday but warned that uncertainty linked to the Middle East war has made its outlook for the year ahead increasingly difficult to predict.
The company said profit after tax rose 35% to 2.17 billion euros ($2.52 billion) in the 12 months to the end of March, compared with the same period a year earlier.
Chief executive Michael O’Leary said the airline was facing significant uncertainty over costs and demand. “With zero H2 visibility and significant fuel price/potential supply volatility, it is far too early to provide any meaningful FY27 profit guidance at this time,” he said in a statement.
Oil prices have climbed since the start of the US–Iran war in late February, pushing up jet fuel costs across the aviation industry.
Ryanair said it had hedged around 80% of its fuel needs at $67 per barrel through to April 2027, a move it said would help protect earnings amid “very volatile oil markets”.
However, the airline cautioned that its full-year outlook remained “heavily exposed to adverse external developments”, including any further escalation in the Middle East conflict.
It also warned that overall costs were likely to increase in the coming year due to higher unhedged fuel expenses, as well as rising crew costs and aircraft maintenance spending.
Despite the uncertainty, Ryanair reported that group revenue rose 11% to 15.5 billion euros over the financial year, supported by higher ticket prices.
However, it said fares for its peak July-to-September travel season, previously expected to increase, were now trending flat.
The company added that recent pricing trends had softened as economic uncertainty weighed on consumer demand, driven by higher oil prices, concerns over fuel supply, and inflationary pressures affecting household spending.
