Ryanair profits drop as Iran war puts off passengers and lifts fuel costs
Summary
Ryanair’s profits dropped by 34% between April and June because war in the Middle East raised jet fuel prices and made people hesitant to book flights. The airline had to lower ticket prices to encourage customers, and it expects fares this summer to be slightly cheaper than last year.Key Facts
- Ryanair’s pre-tax profit fell to €593 million (£503 million) from April to June.
- Sales stayed about the same, but fares were cut to boost demand.
- The war in the Middle East caused jet fuel prices to rise sharply.
- Ryanair had fuel price agreements (hedges) but some fuel costs outside these deals more than doubled.
- Rising crude oil prices passed $90 per barrel after conflict between the US and Iran intensified.
- Traffic through the Strait of Hormuz, a key oil shipping route, stopped due to the conflict.
- Ryanair warned its full-year results depend heavily on events in the Middle East, Ukraine, and fuel prices.
- Experts say if the conflict continues, oil prices could jump to around $150 per barrel.
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