Ryanair CEO Michael O’Leary has warned there could be disruption to jet fuel supplies in early May if the Middle East conflict continues.
Michael told Sky News the airline was ‘reasonably well hedged’ on 80% of its fuel but is paying double on the remainder.
“We don’t expect any disruption to supply until about early May,” he said. “The fuel companies are happy there won’t be any disruption until early May. But if the war continues we do run the risk of supply disruptions in Europe in May and June. We hope the war will finish sooner than that and the risk to supply will be eliminated.
“If the war finishes and the Strait of Hormuz opens by the middle or end of April then there is no risk to supply. If the war continues, and the disruption to supply continues, we think there’s a reasonable risk – maybe 10, 20, 25% of our supplies might be at risk through May and June.”
Last month, easyJet CEO Kenton Jarvis urged customers to book early to avoid hikes in air fares due to rising oil costs as a result of the war.
He said easyJet has hedged fuel for most of the summer, but warned: “The reality is, as you look further forward, and the hedges start reducing in size, I think the message would be book as early as possible, because that will start feeding in at some stage.”
