JAKARTA - Ryanair's profit fell by more than a third in the last quarter due to the US-Iran conflict which triggered an increase in fuel costs and forced the airline to lower ticket prices to attract customers.
In a performance report released Monday, July 20, Europe's largest airline said its profit for the three months to the end of June fell 34% to €538 million compared with the same period a year earlier.
The company said operating expenses increased 11% in the period, mainly due to a doubling of the price of unhedged fuel - that is, fuel purchased at current market prices, not supplies that have been locked in at prices for future delivery.
"Ryanair has reduced the average airfare by 6% "because the conflict in the Middle East has triggered consumer doubts, concerns about jet fuel shortages in the EU, economic uncertainty, and ticket booking delays," said Ryanair CEO Michael O'Leary, reported by CNN, Monday, July 20.
The low-cost airline also expects ticket prices during the summer to be lower than the previous year. The company's shares were down 4.3% at 04.32 a.m. local time.
World oil prices have jumped sharply since the US and Iran resumed conflict more than a week ago, threatening the continuation of peace talks. Brent crude oil prices, as a global benchmark, briefly broke through the $90 per barrel mark on Monday, July 20. - the highest level in more than a month.
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