in the short term the oil price has dropped well below what FR have hedged it at. This makes it complex as how much flying is profitable as oilis $108.80 on the spot market. FR have hedged in a higher operating cost.
(from July q1 results) We have taken advantage of the recent weakness in oil prices and are now hedged 90% for September at $129 per barrel, 80% for Q3 at $124 per barrel, but are unhedged for Q4.
The weak pound is going to hurt the UK to Europe market in the winter. Ryanair is also making a big loss on its Aer lingus shareholding. Also noticeable that the airlines going under are not the ones in direct compertition with FR but those flying to the US.
Ryanair has lots of cash in the bank so its not about to go under but is is making more mistakes as it is starting to dig a hole. If it keeps pulling out of routes when the start up discounts end it will get offered less discounts. The power is shifting to the airports.