Why has Ryanair cut its annual passenger target, and what financial impact does it expect from this decision?

Ryanair cut its passenger target for the year to 31 March from 216 million to 214 million to reduce exposure to 'unhedged winter oil' during the unprofitable off-season, as jet fuel is trading at $140 a barrel. The airline expects this schedule reduction to lower its winter losses by €70m to €100m.

What conditions does Ryanair say would lead to higher short-haul air fares in Europe, and how does its fuel hedging position affect its outlook?

Ryanair warns that if high oil prices persist through to summer 2027, short-haul air fares in Europe will increase 'materially' because some less well-hedged competitors may struggle to maintain capacity or even survive the coming winter. Although jet fuel is currently at $140 a barrel, Ryanair has hedged 80% of its jet fuel at $67 a barrel, enabling it to expect another profitable year—albeit below last year’s record profit after tax.