DUBLIN, May 18, 2026 (BSS/AFP) - Irish no-frills carrier Ryanair reported Monday a sharply higher annual profit but warned that the Middle East war has clouded its outlook for the year ahead.

Profit after tax jumped 35 percent to 2.17 billion euros ($2.52 billion) in the 12 months to the end of March compared to the period a year earlier.

"With zero H2 visibility and significant fuel price/potential supply volatility, it is far too early to provide any meaningful FY27 profit guidance at this time," chief executive Michael O'Leary said in a statement.

Oil prices have soared since the start of the US-Iran war in late February, resulting in much higher jet fuel costs.

Ryanair said it had hedged 80 percent of its fuel costs at $67 a barrel through to April 2027, which should help insulate its earnings amid "very volatile oil markets".

However, it said its full-year outlook remains "heavily exposed to adverse external developments", including any escalation in the Middle East war.

The company said its costs could rise in the year ahead as it faces a higher bill for unhedged fuel costs, as well as crew expenses and aircraft maintenance.

In its latest financial year, group revenue increased 11 percent to 15.5 billion euros as ticket fares rose.

Fares for its peak July-September period, previously forecast to rise, are now trending flat.

"Pricing in recent weeks has eased somewhat in response to economic uncertainty caused by higher oil prices, the fear of fuel shortages and the risk of inflation adversely impacting consumer spending," the company said.