# Ryanair profits hit by soaring jet fuel prices and fare cuts

By Russ Mould — 2026-07-20

Russ Mould, investment director at AJ Bell, said: “The latest update from Ryanair provided insight into airline sector stress thanks to the turbulence created by the Iran conflict.

“Even for those carriers whose routes are not directly impacted, the increase in fuel prices, the pressures on consumer confidence, and the diminished appetite for overseas travel are all major headwinds to navigate.

“Visibility is worse than San Francisco airport when the fog sets in, and in that context it’s not a surprise to see Ryanair opt against giving full-year guidance.

“Ryanair is better placed than many of its rivals. A good chunk of its fuel supply is hedged at much lower levels than the prevailing oil price and it has a robust balance sheet.

“That may boost its competitive position in the medium term if peers on shakier foundations start to crumble and capacity comes out of the market.

“EasyJet succumbing to a bid from private equity might also be helpful if it results in a more conservative approach on its part.

“However, the rapid increase in costs for the unhedged portion of Ryanair’s fuel supply and downward pressure on fares is impacting margins. Management admits their fare income is at the mercy of booking activity in August and September.

“The renewed escalation in hostilities in the Middle East is unhelpful and without a lasting resolution, challenging times for the airline and travel space look set to continue.”

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