Ryanair Profit Falls 15% to €2.15 Billion as Fuel Doubles

Ryanair's first-half profit fell 15% to €2.15 billion, the airline reported on Monday, November 2, as the price of its unhedged jet fuel doubled and average fares fell 4% — even though passenger traffic grew 6% to 125.8 million. Europe's largest airline by passengers still made more than €2 billion in six months, but the squeeze shows exactly how an oil price above $100 a barrel reaches an airline that cannot pass the cost straight to customers.

What happened

Ryanair Holdings reported profit after tax of €2.15 billion for the first half of fiscal 2027, down from €2.54 billion a year earlier. Revenue rose 3% to €10.08 billion, while operating costs climbed 10% to €7.69 billion. Scheduled revenue rose just 1% to €7.0 billion because the 6% traffic gain was offset by fares falling 4%. Ancillary revenue — bags, seats and extras — grew 6% to €3.08 billion, broadly tracking passenger growth.

The second quarter alone told the same story in milder form: profit after tax fell 6% to €1.61 billion, revenue rose 4% to €5.70 billion, and the average fare dipped 2% to €63.40. Chief executive Michael O'Leary linked the weaker fares to April not having a full Easter this year and to booking hesitancy driven by the Middle East conflict.

Why fuel is the whole story

Ryanair said the price of its unhedged jet fuel doubled to around $130 a barrel. The airline has hedged 80% of its fiscal 2027 fuel needs at about $67 a barrel, which insulated most of this year's result — but 20% remained unhedged at the higher price. For fiscal 2028, cover has been extended to 25% at roughly $95 a barrel, and the company estimated its fiscal 2028 fuel bill could rise by about €2 billion at current forward prices if those levels hold.

That is why the results landed on a morning when crude itself was moving the other way: Brent fell about 3.7% in early European trading on hopes of U.S.-Iran talks. Airlines are living with both directions at once — a cheaper barrel today, and a forward curve that still prices years of expensive fuel.

Why it's blowing up

Ryanair is the first major European airline to put hard half-year numbers on the fuel shock, so its report became the morning's reference point for the whole sector. The counterweight in the same release is shareholder returns: Ryanair declared an interim dividend of €0.273 per share, payable in late February 2027, and announced a new €800 million share buyback expected to run for about 10 months from February. It also noted it repaid its final €1.2 billion bond in May, leaving the group effectively debt-free, with net cash of €2 billion at the end of September.

Key facts

• H1 profit after tax: €2.15 billion, down 15% from €2.54 billion a year earlier.
• Revenue: €10.08 billion, up 3%; operating costs: €7.69 billion, up 10%.
• Traffic: 125.8 million passengers, up 6%; average fares down 4%.
• Fuel: 80% of FY27 needs hedged at about $67 a barrel; unhedged fuel around $130 a barrel; FY28 cover extended to 25% at about $95.
• Outlook: FY27 traffic expected to grow 3% to 214 million passengers; the company said it is too early for meaningful FY27 profit guidance.
• Returns: €0.273 interim dividend and a new €800 million buyback from February 2027.

What's next

Watch three things. First, whether Brent's fall on U.S.-Iran talk hopes holds — every sustained drop cuts the unhedged bill Ryanair just flagged. Second, winter traffic: the trimmed 214 million target implies November-to-March traffic broadly flat year on year, so fares, not volume, decide the second half. Third, rival airlines' results this month will show whether Ryanair's cost lead widened, as it claims, or whether the whole sector absorbed the same fuel hit equally. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security.

Sources

• Grafa — Ryanair first half profit falls 15% to €2.15 billion
• TradingView / dpa-AFX — Ryanair Q2 profit down, despite higher traffic
• TickStock — Ryanair first-half profit falls 15% as fares drop
• TravelExtra — Ryanair H1 statement in full
• Seeking Alpha — Ryanair GAAP EPS of €1.54, revenue of €5.7B

FAQ

Why did Ryanair's profit fall 15%?

Because its unhedged jet fuel price doubled to around $130 a barrel and average fares fell 4%, pushing operating costs up 10% to €7.69 billion despite 6% passenger growth.

How much profit did Ryanair make in the first half?

Profit after tax was €2.15 billion on revenue of €10.08 billion, down from €2.54 billion a year earlier, with 125.8 million passengers carried.

What did Ryanair say about future fuel costs?

It has hedged 80% of fiscal 2027 fuel at about $67 a barrel and extended fiscal 2028 cover to 25% at about $95, while estimating the fiscal 2028 fuel bill could rise by about €2 billion at current forward prices.

Is Ryanair still returning cash to shareholders?

Yes. It declared a €0.273 interim dividend payable in February 2027 and announced a new €800 million share buyback, after repaying its final €1.2 billion bond in May.