Ryanair says flat fares likely amid lack of visibility – Daily Business

Cautious: Irish airline Ryanair

Ryanair said the ongoing conflicts in Iran and Ukraine are causing a lack of visibility for the second half of the year though it expects both to restrict any growth in fares.

It said pricing in recent weeks has been trending “broadly flat” in response to economic uncertainty caused by higher oil prices, the fear of fuel shortages and the risk of inflation adversely impacting consumer spending.

However, Europe remains relatively well supplied with jet-fuel, with significant volumes sourced from West Africa, the Americas and Norway, said the Irish airline.

Its hedging of 80% of 2027 jet fuel requirements will insulate group earnings in the current volatile oil markets and “widen the cost advantage over EU competitors for the remainder of the year”.

However, the price of the unhedged 20% has spiked due to the Middle East conflict and the board said it was unable to provide any accurate guidance for the full year.

“With zero H2 visibility and significant fuel price/potential supply volatility it is far too early to provide any meaningful FY27 profit guidance at this time”, it said. 

“We hope to be able to give shareholders a clearer picture on H1 pricing and fuel costs during our Q1 results release in late July.”   

The airline posted a record pre tax profit for the year to the end of March of €2.4 billion against €1.8bn last time. Revenue for the year rose by 11% from €13.95bn to €15.54bn.

Ryanair also disclosed that discussions with group CEO Michael O’Leary over a new employment contract, which would take his planned term to 2032, had “almost concluded”.

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