Ryanair's profits have taken a sharp dive, and the airline is pointing fingers at war in the Middle East for sending jet fuel prices through the roof and making passengers think twice about booking flights. The Irish budget carrier reported pre-tax profits dropped 34% to €593m (£503m) between April and June, while sales stayed flat - forcing the airline to cut fares just to get people to fly. Summer fares are expected to be slightly lower than last year, thanks to what Ryanair calls 'consumer hesitancy' around air travel, which is a polite way of saying people are nervous about flying into a conflict zone.

Fuel costs have been the real headache. Since the US and Israel launched strikes against Iran in February, the price of jet fuel has jumped, and while Ryanair hedged some of its future fuel costs, the ones not covered have more than doubled. Crude oil prices hit $90 (£67) a barrel for the first time in a month, then eased slightly after a weekend of intense exchanges between the US and Iran - because nothing calms markets like a good old-fashioned exchange of fire. Traffic through the Strait of Hormuz, a critical route for global oil and gas, has ground to a halt, adding to the chaos. An interim peace deal last month provided brief relief, but negotiations broke down, and fighting resumed, sending prices spiking again.

Ryanair warned that its full-year results will be 'highly sensitive' to external factors like conflict escalation in the Middle East and Ukraine, as well as the price of unhedged jet fuel. Shane Oliver, head of investment strategy at fund manager AMP, offered a cheery outlook: 'The longer the strait remains closed and the war escalates, the greater the risk that oil prices will have to rise to around $150 a barrel to bring demand down to match the hit to supply.' He added, 'This is not our base case but it's a high risk again.' So, no need to panic - yet.

Despite the doom and gloom, Ryanair's finance chief Neil Sorahan said flights on popular Mediterranean routes are still full. 'People [are] as keen to get away as ever, albeit booking just a little bit later,' he said. Between April and June, revenue ticked up 1% to €4.4bn, and passenger numbers rose 6% to 6.1 million - helped by the Easter holiday. But fares fell 6% as the airline slashed prices to lure travelers worried about the Iran war. So, if you're looking for a cheap flight to the beach, a geopolitical crisis might just be your ticket.