Ryanair Revenue and Passengers Rise 6% Despite Higher Fuel Costs

Ryanair reported pre-tax profits of €593 million for the three months ended in June, a 34 percent decline from the prior year. Revenue rose 1 percent to €4.4 billion as the airline carried 6.1 million passengers, up 6 percent. Average fares fell 6 percent after Ryanair reduced prices to stimulate demand amid softer booking patterns.

Jet fuel costs outside the company's hedging contracts more than doubled following U.S. and Israeli strikes on Iran that began in February. Crude oil prices reached $90 a barrel on Monday before easing slightly, and traffic through the Strait of Hormuz stopped.

An interim peace agreement last month had eased energy prices before renewed fighting pushed them higher again. Finance chief Neil Sorahan said Mediterranean routes remained full and travelers remained eager to fly, though many now book closer to departure. Ryanair stated that fares for July through September are expected to finish modestly lower than a year earlier because of consumer hesitancy.

The company said full-year results will remain highly sensitive to developments in the Middle East and Ukraine as well as unhedged fuel prices. Ryanair shares fell 5 percent on Monday.