Ryanair has said it has 'almost zero concerns' about jet fuel supplies this summer, despite ongoing restrictions on shipping through the Strait of Hormuz linked to the Iran conflict. The budget airline's chief executive, Michael O'Leary, said Europe has secured alternative fuel sources from West Africa, Norway, and the Americas, alleviating earlier fears of widespread cancellations.
However, O'Leary warned that holidaymakers booking later this year could face higher fares, as persistent consumer uncertainty has led to lower summer bookings than usual, keeping prices down for now. 'There was a real concern in Europe two months ago. We now have almost zero concerns over fuel supplies in Europe. The challenge remains price,' he said.
Ryanair has hedged 80% of its jet fuel requirements to April 2027 at about $67 a barrel, but cautioned that unit costs could rise by about 5% if fuel prices remain elevated. The airline's chief financial officer, Neil Sorahan, expressed confidence that no supply shocks would occur this summer, but noted that a prolonged conflict could lead to airline casualties in Europe this winter.
The airline reported a record after-tax profit of €2.26bn (£2bn) for the financial year ending in March. However, it suspended guidance for its 2027 financial year, citing potential increases in fuel, environmental taxes, and wage bills. Ryanair also expects its EU environmental taxes to rise by €300m this year to about €1.4bn, which it said makes EU air travel less competitive.
In other news, Ryanair is in negotiations to extend O'Leary's contract beyond 2028 to 2032. Under the proposed terms, O'Leary could buy 10 million shares at pre-conflict market prices, contingent on achieving 'very ambitious' profit or share price growth targets.
