Ryanair's profit slumped by more than a third on higher fuel costs and weaker fares in the April-June quarter, the Irish no-frills airline said on Monday, while summer fares look set to fall amid consumer nervousness around the Iran war and broader economy.
The weak results for Ryanair, Europe's largest airline by passenger numbers, are the latest sign of how the five-month-old Iran war is turning up the pressure on companies as peace talks drag and oil prices remain elevated.
On Monday, U.S. forces hit Iran for a ninth consecutive day as part of an escalating cycle of attacks between the pair after an interim cease-fire agreement signed a month ago unraveled, pushing oil prices back up.
Ryanair shares were down 6% at 24.36 euros at 8 a.m. Rivals Wizz, Lufthansa, British Airways' owner IAG and Air France- KLM were also all lower.
"The price of our 20% unhedged fuel doubled in the quarter and fares fell 6%, primarily we think due to the impact of the Middle East conflict" and the timing of Easter, Chief Executive Michael O'Leary said in a video presentation.
