Ryanair chief executive Michael O'Leary has warned that airfares could rise by around 5% if the Strait of Hormuz remains blocked for an extended period. Speaking to Bloomberg, O'Leary expressed concern over oil prices and the potential impact on unit costs, which could lead to airlines failing across Europe.
The budget airline boss noted that while there are no immediate jet fuel supply issues until the end of September, a prolonged closure of the strait could push costs up. 'If the Straits stay closed till September, October, November, then we are looking at our unit costs up about 5 per cent,' he said, adding that this could result in 'airlines failing all over Europe.'
O'Leary's comments came as Ryanair reported a 40% increase in after-tax profit for the year to March 2026, reaching €2.26bn (£1.97bn), slightly above analyst expectations. Despite the positive results, Ryanair shares fell 4% at market open.
The CEO also warned US President Donald Trump that the conflict in Iran could have political consequences. 'Iran is going to starve if they don't get the Straits of Hormuz reopened in the next couple of months,' O'Leary said. 'Trump is going to lose the House and the Senate if he doesn't get this resolved.'
