Ryanair has said it has 'almost zero concerns' about jet fuel supplies this summer, despite ongoing fears of shortages linked to the conflict in Iran. However, the budget airline warned that holidaymakers booking later this year could face higher fares due to persistent consumer uncertainty.
Chief executive Michael O'Leary said Europe had secured alternative sources of jet fuel from west Africa, Norway and the Americas, alleviating earlier worries. '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 warned that unit costs could rise by 5% if fuel prices stay high. O'Leary said a prolonged conflict could cause airlines with lower hedging to go bust, adding: 'If it does continue over those 12 months there will be airline casualties in Europe this winter.'
The airline reported a record profit after tax of €2.26bn (£2bn) for the year ended March, but suspended guidance for 2027 due to potential increases in fuel, environmental taxes and wage bills. It also flagged that environmental taxes in the EU are expected to rise by €300m this year to about €1.4bn, making EU air travel less competitive.
Ryanair is in negotiations with O'Leary about extending his contract beyond 2028 to 2032. Under the proposed deal, he could buy 10m shares at pre-conflict prices if 'very ambitious' profit or share price targets are achieved.
