Ryanair has pulled its annual profit forecasts after jet‑fuel costs spiked amid the Iran conflict. The low‑cost carrier, which hedged 80 % of fuel, now faces unhedged prices that could lift unit costs by a mid‑single‑digit percentage. Investors will see the airline’s earnings slide in the coming year.

Last year’s results showed a 36 % jump in profits to €2.4 bn on revenues that climbed 11 % to €15.5 bn. Ryanair warned that the Iran war, which began on 28 February, has pushed the price of the remaining unhedged fuel higher. The airline now projects a modest rise in fares for the summer season and later months.

Environmental levies climbed €300 mn, pushing Ryanair’s total cost bill to €1.4 bn and tightening EU air‑travel margins. The carrier cited a well‑supplied jet‑fuel market from West Africa, the Americas and Norway, but warned that pricing has eased amid economic uncertainty. Demand remains robust, though consumers face higher inflation risks for future travel in the year ahead.

Amid these pressures, Ryanair began talks with chief executive Michael O’Leary over a new contract for 2028‑32. Under the deal, he could buy 10 mn shares at market price before the Iran conflict, worth about €700 mn, contingent on achieving ambitious profit or share‑price targets. Thresholds will be set later before the end of the year to maintain.