Ryanair warns rising fuel costs and consumer uncertainty from the Iran conflict are weighing on air fares, with expected mid-single-digit declines in Q1 and flat pricing for the July–September 2026 quarter.

Analysts had projected roughly €2.2 billion in profit, and the results narrowly beat those expectations.

The airline has hedged about 80% of its jet fuel needs through April 2027 at roughly $67 per barrel, but unit fuel costs could still rise if market prices stay elevated.

The board and CEO are nearing a four-year extension of the CEO’s contract from 2028 to 2032, potentially including a grant of up to 10 million share awards tied to ambitious profit or share-price targets, with engagement of major institutional shareholders planned.

Ancillary revenues now account for about a quarter of total revenue, rising 6% to €4.99 billion as services such as priority boarding and onboard sales gain traction.

Ryanair excludes an €85 million provision related to an Italian antitrust fine from the figures, which is being appealed in court.

CEO noted robust demand despite regional conflicts, highlighting 130 new summer 2026 routes and a shift toward lower-tax markets with new bases in Rabat, Tirana, and Trapani.

Fuel costs fell 4% to €5.42 billion this year, benefiting from hedging and other factors.

Full-year profits were strong, with underlying after-tax profits up about 40% to €2.26 billion and pre-tax profits up about 36% to €2.42 billion, while the outlook for the new financial year remains uncertain.

Ryanair expects around 216 million passengers in the year to March 2027, up about 4%, mirroring 2025–26 growth, with demand described as robust though increasingly late bookings.

Shares fell in early trading on the earnings outlook, with the stock down roughly 3–4% and peers also retreating as investors reassess outlook amid volatility.

Airlines are diversifying fuel sourcing amid geopolitics, with Europe largely fuel-sufficient but prices elevated, pressuring ticket pricing and costs.