Ryanair says fuel shortage risk eased
- Ryanair chief executive Michael O’Leary said April 28 the risk of a European jet-fuel shortage is receding after suppliers signaled steadier deliveries. - O’Leary said fuel companies now expect no supply disruption before the end of June, easing immediate summer-travel fears even as prices stay elevated. - Smaller airports remain more exposed if shortages return and border delays worsen. (aci-europe.org)
Ryanair said the risk of a jet-fuel shortage in Europe has eased, with suppliers telling the airline they see no disruption through the end of June. (rte.ie) (globalbankingandfinance.com) Chief executive Michael O’Leary made the comment on Tuesday, April 28, after weeks of concern that the Middle East war and shipping disruption could choke off supplies into Europe. (rte.ie) (iea.org) The immediate scare came from Europe’s heavy reliance on imported jet fuel and the shock to flows through the Strait of Hormuz, a key route for oil and refined products. (iea.org 1) (iea.org 2) O’Leary said supply had improved over the past three weeks, with output from the United States, North Africa and Norway helping replace lost Middle East volumes. (bloomberg.com) That does not mean the pressure is over. O’Leary also said summer fares could still rise by 3% to 4% if the war ends quickly and demand firms while fuel remains expensive. (rte.ie) He separately warned that airlines with weaker fuel hedges could face financial trouble if jet-fuel prices stay high through the summer, while Ryanair says it has hedged 80% of its fuel. (cnbc.com) The wider market still looks fragile. CNBC reported on April 29 that Europe faces an acute logistics problem and that the International Energy Agency had warned earlier in April that the region could run out of jet fuel within weeks. (cnbc.com) (iea.org) Regional airports have less room to absorb another shock. Airports Council International Europe says airports handling fewer than 1 million passengers were still 34.5% below 2019 traffic in 2024. (aci-europe.org) Airports and airlines are also dealing with delays from the Schengen Entry/Exit System, which industry groups said caused disruptions and missed flights when full operations began on April 10. (aci-europe.org) For now, Ryanair’s message is narrower than “all clear”: suppliers see enough fuel to get Europe through June, but the buffer for summer travel still looks thin. (globalbankingandfinance.com) (cnbc.com)
