Ryanair Holdings Plc is launching a cost-cutting drive to offset a €2 billion ($2.2 billion) increase in jet-fuel charges next year, driven by ongoing Middle East conflict and elevated oil prices. The airline will review airport deals, adjust crew staffing, and explore AI to reduce expenses. Profit after tax fell 15% to €2.15 billion in the first half of fiscal 2027, down from €2.54 billion a year earlier, as unhedged unit costs rose 5% and fuel prices doubled to around $130 a barrel.
Ryanair has lowered its annual passenger target to 214 million and plans a reduced winter schedule. It expects fares to rise significantly next year due to sustained high fuel costs. The company announced a €0.273 per share dividend and an €800 million share buyback, both starting in February 2027.
Shares have dropped 23% this year, underperforming the Bloomberg world airlines index. While third-quarter demand remains strong, the airline has no visibility for the fourth quarter. US carriers Delta and American Airlines have also cut outlooks, reflecting broader industry strain.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing