Ryanair reported almost zero concerns about jet fuel supplies in Europe for the summer, despite earlier fears tied to the Iran war and restricted shipping through the Strait of Hormuz. Europe is described as well stocked through shipments from West Africa, Norway, and the Americas. The airline hedged about 80% of its jet fuel needs to April 2027 at roughly $67 per barrel. Ryanair warned that if fuel prices stay higher, unit costs could rise by about 5%. It also said consumer uncertainty reduced summer bookings and lowered fares, with prices expected to fall by a mid-single digit percentage in the three months ended in June. Ryanair cut its summer fare outlook to broadly flat versus last summer, while demand remains strong but booking timing has shifted later.
"“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.”"
"“Ryanair said Europe is well stocked with fuel thanks to shipments from west Africa, Norway and the Americas. While Ryanair has hedged 80% of its jet fuel requirements to April 2027 at about $67 a barrel, it said the carrier's unit costs could rise by about 5% if fuel prices remained 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 said 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 said fares had fallen in recent weeks because of uncertainty around the conflict in the Middle East, with prices expected to fall by a mid-single digit percentage in the three months ended in June. The company also cut its outlook for fares this summer, with prices now expected to be broadly flat on last summer, after a previous forecast of a modest increase in the peak travel season.”"
Read at www.theguardian.com
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