Ryanair’s profits fell as the war in Iran drove passengers away and raised fuel costs

Ryanair’s profits plummeted as jet fuel prices skyrocketed during the Middle East war and customers refused to fly.

Irish Airlines’ pre-tax profit fell 34% to €593m (£503m) as sales were flat between April and June and the company was forced to cut fares to stimulate demand.

Ryanair also said it expects summer fares to be slightly lower than last year. “Consumer Hesitation” Around Air Travel.

Jet fuel prices rose after the US and Israel attacked Iran in February and Ryanair said it had “hedges” or deals on future fuel costs, which were not included in these arrangements, more than doubled.

Crude oil prices continued to rise above $90 (£67) a barrel for the first time in a month after a month-long exchange of fire between the US and Iran at the weekend.

In the Strait of Hormuz – a vital route for international oil and gas supplies – traffic has come to a standstill.

Brent crude, a benchmark for global oil prices, rose 2.5 percent on Monday.

The airline warned that its results for the year would be “highly sensitive” to external factors such as escalating conflicts in the Middle East and Ukraine and unhedged jet fuel prices.

Fund manager Shane Oliver, head of investment strategy at AMP, said: “As tensions close and the war escalates, the risk of oil prices rising to $150 a barrel increases, reducing demand to match supply.”

He said: “This is not our base, but again it is a high risk.”