Ryanair says fuel supply fears easing but late summer bookings may push up fares

Ryanair says it has “almost zero concerns” about jet fuel shortages this summer despite disruption linked to the conflict involving Iran, although the airline warned that travellers who delay booking could end up paying more later in the year.

Chief executive Michael O’Leary said Europe had secured alternative fuel supplies from regions including west Africa, Norway and the Americas, helping to ease earlier concerns over shortages caused by restrictions in shipping through the Strait of Hormuz.

“There was a real concern in Europe two months ago,” O’Leary said. “We now have almost zero concerns over fuel supplies in Europe. The challenge remains price.”

O’Leary said he did not expect the conflict or disruption in Hormuz to continue into next year, though he warned that a prolonged crisis could put pressure on weaker airlines across Europe.

“If it does continue over those 12 months there will be airline casualties in Europe this winter,” he said.

Ryanair finance chief Neil Sorahan added that the company was “increasingly confident” there would be no major fuel supply shocks during the summer season.

Despite strong overall demand, the airline said bookings have become more last-minute as consumers remain cautious amid geopolitical uncertainty and ongoing cost-of-living pressures.

Ryanair now expects summer fares to remain broadly unchanged compared with last year, revising down an earlier prediction of modest increases. Prices in the three months to June are forecast to fall by a mid-single-digit percentage.

“Demand is still strong, but people are leaving it longer to book so we do not have the visibility that we normally have for July to September,” Sorahan said.

He warned that passengers waiting until the last minute to secure flights could still face higher prices closer to departure dates.

Market analysts said airlines remain under pressure as rising inflation continues to affect consumer spending, limiting their ability to pass higher fuel costs directly on to customers.