04:54 AM EST, 11/02/2026 (MT Newswires) -- Ryanair's (RYA.IR) fiscal first-half profit dropped 15% year over year, as consumer hesitancy lowered fares and unhedged fuel costs surged amid the sustained Middle East conflict, prompting management to launch a cost-cutting review ahead of expected headwinds. Attributable profit for the six months ended Sept. 30 declined to 2.15 billion euros from 2.54 billion euros a year earlier, according to a Monday earnings report. Total operating revenue, however, rose to 10.08 billion euros from 9.82 billion euros previously, with a 6% growth in passenger traffic but at 4% lower fares. Operating costs rose 10% to 7.69 billion euros as the cost of the budget airline's 20% unhedged fuel doubled in the first half. Ryanair's fiscal 2027 fuel is 80% hedged at $67 per barrel, while its hedge cover for 2028 was extended to 25% on volatile oil prices at $95 per barrel. While "strong" fiscal third-quarter demand and fuel hedging are expected to protect fiscal 2027 earnings against oil volatility, the company withheld its full fiscal year profit outlook, citing "zero fourth-quarter visibility" and a closer-in booking window. Traffic for the fiscal year is projected to grow 3% to 214 million passengers, though final unit costs will hinge on unhedged jet fuel prices and upcoming holiday travel. With low-cost hedges rolling off and fuel prices expected to stay elevated, Ryanair said it expects to be hit by a 2 billion-euro increase in its fiscal 2028 fuel bill that higher fares alone will not fully offset. "To help address this, we're reviewing all costs across Group airlines with a particular focus on airport churn negotiations (as the fuel efficient MAX 10s deliver from Spring 2027), maturing labour agreements (which may require temporary pay freezes), lower crewing ratios and increased use of AI to drive further operational and back-office/support functions productivity," Chief Executive Officer Michael O'Leary said. Ryanair's stock was up 2% during Monday midmorning trading in Dublin.

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