Ryanair chief executive Michael O'Leary has criticised Chancellor Rachel Reeves' decision to increase air passenger duty, which came into effect today, calling it 'another monumental stupidity'. The comments come as the aviation industry faces severe disruption due to the ongoing war in Iran, which has blocked vital oil routes through the Strait of Hormuz.
Speaking to Sky News, O'Leary warned that passengers could face disruption from 'early May' if the conflict continues. While Ryanair is 'reasonably well-hedged' on 80% of its jet fuel, the remaining 20% is being purchased at $150 a barrel. O'Leary expressed concern over supply shortages, stating there is a 'reasonable risk' that 10% to 25% of supplies could be affected in May and June.
The crisis has been exacerbated by US President Donald Trump's refusal to intervene, telling the UK to 'go get your own oil'. The UK sources at least half its jet fuel from the Middle East, and the last known shipment is expected to arrive within days. Experts warn of a 'perfect storm' as airlines face rising costs and weakening demand.
Other airlines, including Easyjet, Cathay Pacific, and United Airlines, have also warned of higher fares or flight cancellations. O'Leary, however, remains defiant that Ryanair does not expect to cancel flights, provided the Strait of Hormuz reopens by April.
