Ryanair has said it has “almost zero concerns” about jet fuel supplies this summer, despite earlier fears of widespread cancellations linked to the Iran conflict. However, the airline warned that holidaymakers booking later could face higher fares.
Chief executive Michael O’Leary said Europe had found alternative sources of jet fuel, but persistent consumer uncertainty had led to lower summer bookings than usual, keeping fares down. “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.
The travel industry has been hit by worries over jet fuel supply as shipping through the Strait of Hormuz remains restricted. Ryanair said Europe is well stocked thanks to shipments from west Africa, Norway and the Americas. The airline has hedged 80% of its fuel requirements to April 2027 at about $67 a barrel, but warned unit costs could rise by 5% if fuel prices remain higher.
O’Leary said he did not expect the war in Iran to continue or the Strait of Hormuz to remain closed by next year, but a prolonged conflict could cause airlines with lower hedging to go bust. “If it does continue over those 12 months there will be airline casualties in Europe this winter,” he said.
Ryanair reported a record profit after tax of €2.26bn (£2bn) in its financial year ended in March, but suspended guidance for 2027 due to potential increases in fuel, environmental taxes and wage bills. The company also flagged that environmental taxes in the EU could rise by €300m this year to about €1.4bn, “which makes EU air travel even less competitive”.
