O'Leary Says Ryanair "Best Insulated" European Carrier

Europe – Ryanair CEO Michael O'Leary has warned that European airlines face potential failures if jet fuel prices remain at elevated levels through the summer, while revealing the fuel crisis has already cost Ryanair $50 million in additional fuel costs in April alone and could reach $600 million over a year at current pricing.

• O'Leary subsequently indicated that the risk of a supply disruption is receding, with fuel companies now seeing no supply disruption risk until end of June — an improvement from the prior assessment of end of May. He noted that fuel supply from the US, North Africa, and Norway is partially compensating for lost Middle East volumes.
• While last-minute bookings for April and May have been stronger than expected, O'Leary noted that demand for June–September flights is "a little bit weaker," prompting Ryanair to lower some fares to stimulate demand and apply competitive pressure on less-hedged rival airlines.
• O'Leary stated that jet fuel (Jet A-1) pricing has surged from approximately $80 per barrel in March to $150 per barrel, with the average price reaching $179 per barrel for the week ending 24 April according to IATA's Jet Fuel Price Monitor.
• Ryanair is hedged at 80% of its fuel at approximately $67 per barrel with coverage through March 2027, which O'Leary described as making Ryanair the "best insulated, most hedged airline in Europe."
• O'Leary warned that if prices continue at $150 per barrel into July, August, and September, European airlines will fail, adding that in the medium term this would "probably be good for Ryanair's business."
• The International Energy Agency warned that Europe could face jet fuel shortages within six weeks, noting that the Middle East accounted for 75% of Europe's net imports of jet fuel previously. 

Statements

• "If it continues at $150 a barrel into July, August, September, then you'll see European airlines fail and that, in the medium term, would probably be good for Ryanair's business," said Michael O'Leary, CEO of Ryanair.

Source: Ryanair