Shares in Ryanair slid after the budget carrier posted a drop in fiscal first-quarter profit, hit by lower fares and fuel-cost headwinds stemming from the conflict in the Middle East.
In European morning trade, shares were 6.5% lower at 24.28 euros, and are down 18% so far this year.
The Dublin-listed airline on Monday said it made a net profit of 537.7 million euros ($615.1 million) for the three months through June compared with 819.9 million euros in the same period last year.
Revenue edged up to 4.38 billion euros from 4.34 billion euros a year prior. Ancillary revenue, which covers services such as baggage fees and food on board, came in broadly flat. Analysts had forecast revenue at 4.48 billion euros, according to Visible Alpha.
The airline flew 61.3 million passengers in its first quarter, up 6% on year.
Fares decreased 6% in the quarter, taking a hit from consumer hesitancy, later bookings and concerns about jet-fuel supply, the airline said. The conflict in the Middle East has weighed on Ryanair in recent months by driving up jet fuel prices and prompting customers to book closer to departure due to heightened uncertainty.
While the weaker-than-anticipated results surprised Morgan Stanley analysts, RBC Capital analysts remained optimistic. They believe the airline is past the worst of its weakness in short-haul fares, RBC's Ruairi Cullinane said in a note to clients.
Looking forward, the carrier said traffic for fiscal 2027 remains on track to grow 4% but second-quarter pricing is trending modestly down on year, despite a recent uptick in volumes and less price stimulation.
With no visibility into the second half of the year, it is too early to provide after-tax profit guidance for the fiscal year, it added.
The profit outlook for fiscal 2027 remains highly sensitive to external developments, Chief Executive Michael O'Leary said.
The war prompted several European airlines and travel groups to revise their outlooks earlier this year.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
July 20, 2026 04:08 ET (08:08 GMT)
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