Ryanair has revealed that quarterly profits slumped by more than a third as the price of jet fuel doubled due to the Iran war and the airline lowered fares to boost demand.
The Irish low-cost carrier on Monday reported a 34% drop in profits after tax to €538 million ($615.9 million) for the three months to the end of June.
It said earnings were affected by surging jet fuel prices for the 20% of its fuel needs that is not locked in, as well as a 6% drop in average fares.
This offset 6% growth in passenger numbers to 61.3 million and a 1% rise in overall revenues to €4.38 billion.
Chief executive Michael O'Leary said the airline took action to reduce fares "as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings."
Jet fuel prices doubled to $150 a barrel in the quarter as the Iran war sent oil and gas prices rocketing higher, with the vital Strait of Hormuz blocked.
The Dublin-based airline said fares are continuing to come down "modestly" in the second quarter, despite a recent slight rise in bookings, with passengers continuing to book flights close to departure.
