Air fares will remain cheaper than last year for at least the rest of the summer, according to Ryanair Holdings chief executive Michael O’Leary.
Soaring fuel prices and lower fares slashed Ryanair’s profits by a third to €538 million in the three months to June 30th from €820 million during the same period in 2025, the airline said on Monday.
The discounted fares partly responsible for the fall in profits are likely to continue through the summer and probably for the rest of the year, O’Leary predicted after Ryanair published the figures.
The carrier cut fares to spur holidaymakers into booking seats to counter consumer caution about travel after the outbreak of the US-Israel-Iran war.
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Air fares continue to “trend modestly down”, O’Leary confirmed on Monday.
While passengers booking close to their departure dates are paying more than last year, the difference is not enough for the airline to claw back discounts on advance bookings, the airline said.
The final outcome for peak summer travel will depend on what those passengers booking close-in pay, O’Leary cautioned.
“I am bearish on pricing,” he told industry analysts, adding that the airline would hit its target of growing passengers by 4 per cent to 216 million in the current financial year, but at lower fares.
Ryanair increased passenger numbers by six per cent to 61.3 million in the three months to June 30th, the first quarter of its financial year, which ends next March, while revenue rose 1 per cent to €4.38 billion.
The airline’s shares were down 4.6 per cent in Dublin at €24.76 shortly after 2pm on Monday.
Ryanair blamed a spike in jet fuel prices, sparked by the US-Iran war, and a 6 per cent slide in fares for the dent to its profits.
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O’Leary noted that the price of the fuel that it bought during the quarter “more than doubled” on the same period in 2025.
Ryanair locked in 80 per cent of the current financial year’s jet fuel needs in advance at $67 (€58.56) a-barrel, but has to pay inflated prices for the remaining 20 per cent while the US-Iran war continues.
Operating costs rose 11 per cent to €3.81 billion as a result, O’Leary said.
The airline has hedged 15 per cent of its fuel needs for the next financial year at $85 a barrel.
Chief financial officer, Neil Sorahan, confirmed that it would continue to lock in further supplies for next year as opportunities arose.
“We are in a very strong position this quarter with €2.8 billion in cash,” he added.
The group repaid a €1.2 billion bond in May, leaving it debt free, while unused credit of €1.1 billion is available to the airline.
Final costs for the financial year will depend on the price Ryanair pays for the 20 per cent of the fuel that it has not hedged.
Air fares could rise next year, according to Sorahan.
Delays at manufacturers Airbus and Boeing, consolidation and a likely shake out of the European industry as costs rise, will squeeze capacity in the medium term, he predicted.
