Ryanair warns of possible fare hikes amid Middle East tensions

Ryanair said it is confident it will avoid jet fuel shortages this summer despite concerns linked to the conflict involving Iran, but warned that passengers booking flights later in the year could face higher ticket prices.

The airline’s chief financial officer Neil Sorahan said Ryanair does not expect major supply disruptions during the summer season and noted that Europe currently remains well supplied with fuel from west Africa, Norway and the Americas, News.Az reports, citing The Guardian.

According to the airline, ticket prices have recently declined because of uncertainty surrounding the situation in the Middle East. Ryanair expects fares to fall by a mid-single digit percentage during the three months ending in June.

At the same time, the company said customers have been waiting longer before booking holidays, while demand for domestic travel has also increased. Sorahan warned that passengers who delay booking flights until later could eventually face higher fares.

Concerns over jet fuel supplies have affected the travel industry as shipping through the Strait of Hormuz remains restricted. Market analysts also noted that airlines and travel companies have struggled to raise prices because inflation continues to pressure consumer spending.

Ryanair reported a record annual profit after tax of €2.26 billion for the financial year ending in March. However, the airline suspended financial guidance for 2027, citing uncertainty over fuel prices, environmental taxes and wage costs.

The company also said environmental taxes in the European Union are expected to rise by around €300 million this year to approximately €1.4 billion. Ryanair shares fell around 4% in early trading on Monday.

The airline additionally confirmed that negotiations are underway with chief executive Michael O’Leary over extending his contract beyond 2028 until 2032.

News.Az 

By Leyla Şirinova