Ryanair said its 80% fixed‑price fuel contracts limited winter‑period losses to between €70 million and €100 million, but a surge in the un‑hedged 20% of fuel to $150 per barrel pushed operating costs up 11% to €3.8 billion and pre‑tax profit down 36% to €593 million in the three months to June 2026.
Fuel‑hedging strategy and winter‑loss mitigation
In a statement to City AM, the Dublin‑based airline confirmed it had secured fixed‑price contracts covering 80 per cent of its fuel needs for the coming year. The company said the contracts were designed to protect it from volatile jet‑fuel markets ahead of the summer travel season.
“The Dublin‑based firm said it has secured fixed‑price contracts for 80 per cent of its fuel needs for the coming year, but opted to cut some flights to reduce the amount of fuel it has to buy at market rates.” – City AM
By locking in the majority of its fuel supply, Ryanair expects to soften its winter‑period loss by €70 million to €100 million, according to the same source.
Un‑hedged fuel price surge and cost impact
In July 2026 Ryanair disclosed that the cost of the remaining 20% of fuel, which is purchased at market rates, had more than doubled to $150 per barrel – a level the airline described as “more than double the previous price”.
“In July, Ryanair revealed that the cost of the 20 per cent of its fuel needs that were not fixed‑price had more than doubled at the start of this year, to $150 per barrel.” – City AM
The spike in un‑hedged fuel prices translated into an 11% rise in total operating costs, taking them to €3.8 billion for the quarter ending June 2026. The same period saw pre‑tax profit slump 36% to €593 million.
“As a result, the firm’s operating costs jumped 11 per cent to €3.8bn in the three months to June and its pre‑tax profit slumped by 36 per cent to €593m.” – City AM
Profit squeeze and implications for UK passengers
Ryanair’s chief executive, Eddie Wilson, leads a workforce of roughly 9,500 employees from its headquarters at Dublin Airport. The airline’s fiscal year ends on 31 March and it trades on the Nasdaq under the ticker RYAAY.
While the fuel‑hedge has insulated the carrier from the worst of the price shock, the company has taken “emergency measures” to protect its balance sheet. Those measures include trimming its passenger target for the year from 216 million to 214 million – a reduction that directly reduces the amount of market‑priced fuel the airline must buy.
“The budget airline said it has taken emergency measures to protect itself from the higher jet fuel prices caused by the Iran war, trimming its passenger targets from 216m to 214m for this year.” – City AM
Ryanair also warned that “the price of jet fuel could soar next summer, threatening some of its European competitors with collapse.” The comment signals that the airline expects continued pressure on rivals that lack comparable hedging programmes.
For UK travellers, the cost pressure is likely to be reflected in higher ticket prices. Ryanair’s business model relies on low fares supported by tight cost control; a sustained rise in fuel costs, even on a 20% un‑hedged basis, erodes that margin. The airline has not disclosed the exact fare adjustments it may implement, but the link between fuel cost and ticket price is well established in the industry.
What remains unknown
The City AM article does not provide a forward‑looking fuel price forecast, nor does it detail how the airline plans to adjust its hedging ratio beyond the current 80/20 split. It also does not quantify the exact impact of the schedule reduction on revenue, only that it will “soften” winter losses.
Ryanair has not commented on whether it will extend the fixed‑price contracts into the next fiscal year or how it will respond if jet‑fuel prices continue to climb beyond $150 per barrel. The company’s next quarterly filing, due after the end of September 2026, may shed further light on these questions.
Key figures
| Metric | Value | Unit | Period |
|---|---|---|---|
| Winter‑loss mitigation | 70‑100 | million euros | Winter 2025/26 |
| Un‑hedged fuel price | 150 | USD per barrel | Start of 2026 |
| Operating costs | 3.8 | billion euros | Three months to June 2026 |
| Operating‑cost growth | 11 | percent | Three months to June 2026 |
| Pre‑tax profit | 593 | million euros | Three months to June 2026 |
| Pre‑tax profit decline | 36 | percent | Three months to June 2026 |
| Source: City AM, “Ryanair warns soaring jet‑fuel prices could topple rival airlines”, 2 September 2026. | |||
Ryanair’s experience underscores the importance of fuel‑price risk management for low‑cost carriers operating in a market where jet‑fuel costs can swing sharply due to geopolitical events. The airline’s partial hedge has prevented a larger loss this winter, but the un‑hedged exposure still translates into a material cost increase that will likely be passed on to passengers, especially those travelling from the United Kingdom, which remains a core market for the carrier.
Analysts will be watching the airline’s next filing for clues on whether the 80% hedge ratio will be adjusted, how the schedule cuts affect revenue, and whether fare adjustments become necessary to preserve profitability into the summer travel peak.