Ryanair ‘confident’ it will avoid jet fuel shortage but warns of future fare rises
Summary
Ryanair said it is confident it will avoid a jet fuel shortage this summer despite worries related to the Iran conflict. The airline warned that people booking flights later in the year might face higher prices. Ryanair reported strong profits but remains cautious about future costs and fare forecasts.Key Facts
- Ryanair’s chief financial officer said the company is confident there will be no jet fuel supply shocks this summer.
- Fares fell slightly in recent months due to uncertainty from the conflict in the Middle East.
- The airline expects summer ticket prices to be about the same as last year, not higher as previously predicted.
- More travelers are booking flights closer to their travel dates, which can lead to higher last-minute fares.
- Europe has enough jet fuel due to supplies from West Africa, Norway, and the Americas, despite shipping issues in the Strait of Hormuz.
- Ryanair made a record profit of €2.26 billion in the year ending March but suspended future financial guidance due to possible cost increases.
- The airline has hedged 80% of its fuel needs until April 2027 at around $67 per barrel but fuel costs could still rise.
- Ryanair expects EU environmental taxes to increase by €300 million this year, raising costs for air travel in Europe.
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