Ryanair CEO Says Europe Faces No Jet Fuel Shortage Risk – Believes Weaker Airlines Could Struggle From Higher Oil Prices

• O’Leary stated that Ryanair is ‘80% hedged out of March 27,’ giving it strong protection against oil price volatility.
• He also noted that Europe faces no immediate risk of jet fuel shortages through September, with supplies sourced from West Africa, the Americas, and Norway.
• According to the CEO, Ryanair expects major efficiency gains from Boeing 737 Max 10 deliveries, with ‘20% more seats per plane’ and lower fuel burn.

Ryanair CEO Michael O’Leary reportedly said the airline remains well insulated from oil volatility through aggressive fuel hedging. 

According to a Bloomberg interview, he stated that Europe currently faces no immediate risk of jet fuel shortages despite ongoing tensions in the Middle East, but said that a prolonged disruption in the Strait of Hormuz could put significant pressure on weaker European airlines.

Shares of Ryanair rose nearly 5% during Monday trading, while Stocktwits retail sentiment around the airline remained in “bullish” territory at the time of writing.

Fuel Hedging Shields Ryanair From Oil Volatility

O’Leary said Ryanair typically hedges a large portion of its fuel needs. “We're 80% hedged out of March 27, 67 bucks a barrel. We're in great shape,” he said, pointing to the company’s cost stability even as oil markets fluctuate.

He added that Ryanair is entering the period from a position of financial strength, citing record annual results and strong passenger growth. The airline carried “208 million passengers” and generated “2.26 billion euros, profit after tax,” while continuing share buybacks and returning cash to shareholders.

O’Leary Says Europe Faces No Immediate Jet Fuel Shortage Risk

O’Leary said Europe is not at risk of running out of jet fuel despite ongoing geopolitical tensions in the Middle East. He said concerns around supply were greater earlier this year, but added that there are no issues over jet fuel supply right now through to the end of September.

He also stated that most of Europe’s Jet A-1 fuel supply comes from West Africa, the Americas, and Norway, while the easing of Russian sanctions has helped improve fuel availability in Eastern Europe.

He said he remains “very concerned about the price of oil” and that the main issue for airlines is how long the Strait of Hormuz remains closed. 

According to O’Leary, if the Strait remains shut through September, October, or November, weaker European airlines could face financial pressure.

RYAAY Fleet Expansion

O’Leary also highlighted Ryanair’s fleet expansion strategy, which he said will further widen its cost advantage. The airline expects delivery of Boeing 737 Max 10 aircraft starting in 2027. 

“20% more seats per plane burns 20% less oil,” he said, calling the aircraft’s efficiency “remarkable.” Ryanair has ordered 300 of the jets, which he said were secured at unusually favorable prices during the Covid pandemic.

RYAAY stock is down more than 23% year-to-date, though it remains up over 6% over the past 12 months.

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