Ryanair CEO: Jet Fuel Supply Risk Receding, Fares May Be Flat Until March 2027

Ryanair Group CEO Michael O'Leary stated that the risk of a jet fuel supply shortage in Europe due to the Middle East conflict is receding. Fuel companies have informed the airline they foresee no disruption until the end of June, a more confident outlook than a month ago when they projected stability only until the end of May.

O'Leary previously warned in early April about potential disruptions from early June if the conflict persisted. He noted that the risk for Britain, initially deemed most exposed due to Kuwaiti oil imports, has also receded, with larger oil companies assuring backup supply.

Despite stronger-than-expected last-minute bookings in April and May, demand for June-September flights is «a little bit weaker.» This has led Ryanair to lower some fares to stimulate demand. O'Leary added that Ryanair would maintain downward pressure on pricing to challenge rival airlines with less favorable fuel hedging positions. Consequently, average fares could remain flat in the financial year ending March 2027, rather than growing the previously forecast 4-5%. However, if the Middle East conflict ends quickly, fares could rise by «maybe more than 3 or 4%.»