Ryanair says fuel-shortage risk is receding as suppliers adapt to Strait of Hormuz closure
Ryanair says the risk of jet-fuel shortages is receding as suppliers adapt to the closure of the Strait of Hormuz, easing one of the main concerns hanging over the airline's summer outlook. The comments came as Europe's largest airline by passenger numbers reported annual results and warned that consumer anxiety linked to the US-Israeli war on Iran could still weigh on fares. The company said pricing for the July-to-September period is now trending broadly flat, rather than rising as it had previously expected.
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Chief financial officer Neil Sorahan said the airline is increasingly confident there will be no disruption to jet-fuel supplies, including after the summer, because suppliers are increasing volumes and looking for alternatives to Gulf oil supplies. Group chief executive Michael O'Leary said suppliers had told the airline this week that there would be no disruption between now and mid-July. Ryanair had last week said it did not expect a disruption to jet-fuel supplies in Europe this summer, although it warned that profit could come under a bit of pressure if oil prices stayed high for longer.
The airline said visibility on fares remains poor and that summer profitability will depend heavily on last-minute bookings. It said consumer concern about inflation and possible fuel shortages is affecting demand, even as the immediate supply risk appears to be easing. Ryanair also reported an after-tax profit of €2.26 billion for the fiscal year ended in March, slightly ahead of analyst expectations and up from €1.61 billion a year earlier.
The update matters because jet fuel is one of the biggest cost items for airlines, and any disruption to supply routes can quickly affect pricing, capacity planning and profit forecasts. The Strait of Hormuz is a critical shipping route for Gulf oil exports, so any closure or restriction can feed through into energy markets and airline hedging decisions. For a carrier with a large European network and high passenger volumes, even the perception of shortage risk can influence bookings and fare trends.
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Ryanair's comments also sit within a wider period of uncertainty for aviation and energy markets, where airlines are watching both oil prices and consumer sentiment closely. The company said its suppliers are adapting by increasing volumes and seeking alternatives to Gulf oil supplies, suggesting the market is already adjusting to the disruption. That adaptation appears to be reducing the immediate risk of shortages, even if broader price pressure remains.
What remains unclear is how long consumer anxiety will continue to affect demand and whether oil prices will stay elevated enough to squeeze margins later in the summer. Ryanair said visibility on fares is poor, and it is still relying on last-minute bookings to shape profitability in the peak travel period. The key issue to watch is whether the current reassurance on fuel supply holds through the rest of the summer and into the months after that.
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