Ryanair, the budget airline group, has reported a significant decline in its after-tax profits for the three months ending June, with a 34 per cent drop to €538 million.

This downturn is primarily attributed to a doubling of jet fuel prices for unhedged requirements and a deliberate 6 per cent reduction in average fares.

Chief Executive Michael O’Leary explained that fare cuts were implemented proactively due to the Middle East conflict, consumer hesitancy, and economic uncertainty.Despite a 6 per cent increase in passenger numbers to 61.3 million and a 1 per cent rise in revenues, these gains were insufficient to offset an 11 per cent surge in operating costs.

The airline’s full-year outlook remains uncertain, with O’Leary highlighting its sensitivity to external factors such as ongoing conflicts, volatile fuel prices, and European air traffic control strikes.

The profit slump underscores the challenges faced by budget airlines in balancing cost management with competitive pricing amid geopolitical tensions and economic instability.