Ryanair Profits Slide as Mideast Tensions and Fuel Costs Bite

Europe's largest budget carrier says the Iran war has discouraged travelers even as oil prices climb

Ryanair reported a drop in profits, saying the war between the United States and Iran has deterred passengers while pushing up the airline's fuel costs, according to the BBC.

The Irish budget carrier, one of Europe's largest airlines by passenger numbers, said rising oil prices have added to its expenses as Brent crude surpassed $90 a barrel. Higher fuel costs squeeze margins for low-cost carriers like Ryanair that operate on thin per-ticket profits and rely on high passenger volumes to stay profitable.

The airline's warning adds to signs that the conflict in the Middle East is rippling through consumer-facing industries well beyond the energy sector, as travelers weigh geopolitical risk against summer vacation plans. Airlines across Europe have flagged fuel costs as a growing pressure point in recent weeks amid the broader run-up in crude prices.

Ryanair has not said how long it expects the disruption to weigh on bookings, but the results mark a setback for a carrier that has built its business model around aggressively low fares and cost discipline.

— Compiled from reporting by the BBC.