Ryanair weighs spending cuts as profit drops 15 per cent

Ryanair is examining ways to reduce costs after its April–September 2026 net profit declined to €2.15 billion, a 15 per cent fall against the comparable period a year earlier. Lower fares and more expensive unhedged fuel weighed on the Irish airline’s first-half results.

Passenger numbers increased by 6 per cent, reaching 125.8 million, while revenue gained 3 per cent to €10.08 billion. Fares, however, dropped 4 per cent and operating expenses rose 10 per cent to €7.69 billion. The company said uncertainty linked to the Middle East conflict was making customers more hesitant and prompting later bookings.

Fuel hedges cover 80 per cent of the airline’s requirements through its March 2027 financial year-end. The unhedged portion became twice as expensive. Ryanair estimates that current forward prices could mean around €2 billion in additional fuel spending for its financial year ending in March 2028.

Chief executive Michael O’Leary warned that lower-priced hedging contracts would expire before summer 2027. The airline does not expect higher ticket prices and competitors’ capacity reductions to cover the full increase in fuel expenses.

Measures being considered include temporarily freezing wages, assigning fewer crew relative to passenger numbers and using more AI in operational and support work. Separately, an €800 million share repurchase programme is scheduled to start in February 2027, lasting about 10 months if market conditions allow.

Ryanair described demand during October–December as strong but declined to forecast annual profit, pointing to uncertainty about conflicts, fuel, economic conditions and air traffic control disruption in Europe. In September, it reduced its annual passenger goal from 216 million to 214 million alongside winter schedule cuts.