Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Ryanair felt some turbulence in the first quarter, as net profit of €538 million fell short of market expectations by around seven per cent.
“The miss was driven by weaker revenue, as the Middle East conflict made customers more hesitant to book flights abroad, leading to a six per cent decline in average fares during the period.
“This caution looks set to continue in the near term, with second-quarter fares also trending below last year’s level, while markets had been looking for signs of an improvement.
“Higher fuel prices are also weighing on the bottom line, pushing total unit cost up five per cent over the first quarter.
“With relations between the US and Iran souring in recent weeks, there’s scope for fuel prices to keep rising in the near term.
“But Ryanair’s doing a good job of controlling the controllables, and stripping out fuel, unit costs landed much better than expected, rising by only 1.7 per cent.
“Among the European airlines, Ryanair is one of the best hedged against oil prices for 2026. Alongside its intense focus on cost management and strong balance sheet, Ryanair looks like one of the better-placed names to weather the current storm.”
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