Ryanair chief issues grim holiday warning that could affect thousands of Brits this summer | Travel News | Travel
Ryanair chief executive Michael O’Leary has warned of possible disruptions to jet fuel supplies next month if the ongoing conflict in Iran continues. Oil prices have increased since the war began in February. Iran has effectively blocked ships from passing through the Strait of Hormuz, which carries 20% of the world’s oil and liquefied natural gas supplies and about 40% of Europe’s jet fuel supplies.
The conflict began on February 28, when US and Israeli forces launched coordinated airstrikes on targets in Iran. International Energy Agency (IEA) Executive Director Fatih Birol said last month that the world is facing an energy crisis worse than the two oil crises of the 1970s and the war in Ukraine.
Speaking to Sky News, Michael O’Leary said 80 per cent of Ryanair’s fuel was “reasonably well protected”, but the remaining 20 per cent was currently bought at almost double the normal price of around $150 (£113) per barrel.
He said rising oil prices were part of the “wider consequences” of the conflict but the “immediate concern” was jet fuel supplies.
He told the news outlet: “Fuel suppliers are constantly looking at the market.
“We do not expect any disruption until the beginning of May, but if the war continues, we face the risk of supply disruptions in Europe in May and June, and we hope that the war will end sooner than that and the supply risk will disappear.
“We think there’s a reasonable risk that maybe 10% to 25% of our supplies could be at low level, perhaps at risk, throughout May and June, so we’re hoping, like everyone in this industry, that the war ends sooner rather than later.”
“If the war ends by April and the Strait of Hormuz reopens, then the supply risk is almost non-existent.”
Last month EasyJet CEO Kenton Jarvis warned European consumers should expect higher ticket prices towards the end of summer, when fuel hedging measures expire.
At the Newcastle base, which reopened on March 23, the CEO spoke about the challenges facing the airline industry this year.
As reported by ReutersHe said: “The reality is that prices will start to reach the consumer towards the end of the summer, but it also depends on what happens to fuel prices.”
