Ryanair has lowered its passenger target for the 2027 financial year as the Irish low-cost carrier prepares a smaller winter schedule to limit exposure to higher oil prices linked to the Middle East conflict.
The airline now expects to carry 214 million passengers in financial year 2027, down from its previous target of 216 million, according to an announcement on Wednesday.
Winter traffic between November and March is expected to remain at last year’s levels, with no year-on-year passenger growth.
Fuel costs put pressure on airlines
Airlines continue to face significant pressure from rising jet fuel costs as the conflict involving Iran enters its sixth month.
Ryanair warned that a prolonged increase in oil prices would lead to a significant rise in short-haul air fares across Europe, creating additional challenges for several carriers.
The decision to reduce its winter schedule is expected to cut Ryanair’s winter losses by between €70 million and €100 million, according to the company.
Earnings expected to come under pressure
Ryanair said it remains in a strong position to maintain profitability this year, but expects after-tax profit to come in below last year’s level.
The airline, whose business model relies heavily on low fares and high aircraft load factors, is seeking to control costs as energy pressures and geopolitical uncertainty continue to weigh on the aviation sector.
The reduced flight schedule is part of the company’s efforts to limit the impact of higher fuel costs while maintaining its longer-term outlook.
Also read: Airfares surge as airlines pass higher fuel costs to passengers
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