Ryanair's Chief Financial Officer, Neil Sorahan, indicated that the airline is prepared for a potential crisis due to the jet fuel situation, although he does not foresee such a scenario materializing. In an interview with CNBC, Sorahan stated that Ryanair plans to maintain a full flight schedule through the summer and into winter, despite the ongoing volatility in oil markets.
He noted that the airline has hedged 80% of its summer fuel at a price of $668 per metric ton, which positions Ryanair favorably amid economic uncertainties stemming from conflicts in the Middle East and the blockade of the Strait of Hormuz.
Sorahan expressed confidence that oil supply issues are unlikely to disrupt operations this summer, attributing this to a decreasing reliance on the Strait of Hormuz for oil, with alternative sources emerging from the U.S., Venezuela, and Brazil. He acknowledged that while fuel prices are expected to remain elevated, Ryanair's strong hedging strategy provides a competitive advantage.
The airline recently reported a 40% increase in profit after tax, reaching nearly 2.3 billion euros ($2.7 billion) for the year ending in March, alongside a 4% increase in passenger traffic to 208.4 million, although revenue fell by 11% to 15.54 billion euros. Sorahan also warned that weaker airlines may struggle to survive the current fuel crisis, suggesting that some may not endure the winter