The war in Iran suppressed travel demand and pushed up fuel costs, and Ryanair's profits fell sharply
Special topic: Focus on the second quarter financial report of US stocks in 2026 The war in the Middle East has pushed up aviation kerosene prices, passengers' willingness to travel has been sluggish, and Ryanair's profits have shrunk significantly. The Irish airline's pre-tax profits fell 34% to 593 million euros (£503 million) between April and June this year; revenue was essentially flat during the same period and the company had to cut ticket prices to stimulate passenger traffic. Ryanair also said that due to the public's wait-and-see attitude towards air travel, the average air ticket price this summer is expected to be slightly lower than last year. After the United States and Israel launched attacks on Iran in February this year, aircraft fuel costs skyrocketed. Although Ryanair has locked in most of its future fuel purchase costs through hedging and forward price lock agreements, the price of fuel not included in the hedging contract has more than doubled. Several rounds of fierce fighting broke out between the United States and Iran last weekend, and international crude oil prices continued to rise overnight, exceeding $90 per barrel (equivalent to 67 pounds) for the first time in a month. Shipping in the Strait of Hormuz, the global oil and gas transportation chokepoint, has almost come to a standstill. Brent crude, the international crude benchmark, rose 2.5% on Monday. The airline warned that its full-year results are highly vulnerable to external situations, including escalating conflicts in the Middle East and Ukraine, as well as unhedged aviation kerosene price fluctuations. Shane Oliver, head of investment strategy at asset management company AMP Capital, analyzed: "The longer the blockade of the Strait of Hormuz lasts and the conflict continues to escalate, the more likely it is that oil prices will rise to $150 per barrel, suppressing demand to match the current supply shortage." He added: "This is not our baseline forecast scenario, but the risk is now significantly higher."