Ryanair does not expect disruption to jet fuel supplies in Europe this summer but its profit may come under “a bit of pressure” in the current fiscal year to end-March 2027 if oil prices remain high for longer, CEO Michael O’Leary said.
O’Leary said the airline, Europe’s largest by passenger numbers, does not expect to have to cancel any flights this summer but is continuing to lower fares to boost demand with some customers hesitant about booking holidays.
“Our profits may well be under a bit of pressure for the next 12 months if oil prices remain high for longer,” O’Leary told a news conference on Thursday ahead of reporting results for its last financial year on Monday.
O’Leary said two weeks ago that he saw no risk of jet fuel shortages in Europe until the end of June as a result of the Middle East conflict, but on Thursday said he was confident that would be the case for the whole summer based on his assumption that the war would soon come to an end.
While Ryanair is taking “one to two percentage points” off fares into June, July and August, O’Leary said he did not expect there to be a price war in Europe this summer as some rivals were cutting capacity or not growing as fast as forecast.
“Close-in (last minute) bookings are strong and pricing is strong but three, four months out, we’re having to open up a little bit of pricing to stimulate bookings,” he said.
“There’s hesitancy out there. Lots of people are unsure yet. If you’re traveling in June or July, ‘Can I go long haul? Will the Gulf carriers be back operating? Should we just stay in Portugal or Spain or… There is a bit of that.”