Ryanair Trims Passenger Targets and Warns of Fuel Cost Impact in Europe
Ryanair Holdings has lowered its passenger traffic target for the current fiscal year, driven by a strategy to reduce its winter flight schedule to mitigate exposure to elevated oil prices stemming from conflict in the Middle East.
Reduced Estimates and Frozen Winter Traffic
The ultra-low-cost carrier (ULCC) now expects to transport 214 million passengers in the fiscal year ending March 2027, down from its previous forecast of 216 million. As reported by the airline in a statement released Wednesday:
- Flat Traffic: Passenger volume between November and March will remain unchanged compared to the same period last year.
- Loss Mitigation: The reduction in the winter schedule is designed to cut the airline’s seasonal losses by between €70 million and €100 million.
→ Ryanair Partners with Google Cloud to Support Its 300 Million Passenger Expansion Plan
Fare Increases and Competitor Yield Pressure
The aviation sector continues to navigate operational and financial headwinds driven by surging jet fuel prices, set against the backdrop of an ongoing conflict involving Iran entering its sixth month.
From the airline’s perspective:
- Fares on the Rise: Sustained high crude oil prices will trigger a material increase in short-haul airfares across Europe.
- Market Strain: This cost dynamic will place severe financial strain on rival carriers operating within the region.
Despite the adverse input cost environment, Ryanair stressed that it remains well-positioned to maintain profitability throughout the current fiscal year. However, executive management anticipates that net profit (PAT) will fall short of the figures recorded in the previous financial year.
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