Ryanair has plans for 'armageddon' scenario as CFO warns weaker European carriers may not survive jet fuel crunch
Ryanair's CFO expressed confidence in the airline's ability to navigate volatile oil markets, citing a decline in dependence on the Strait of Hormuz for oil supply. The airline reported a significant profit increase despite a drop in revenue, indicating strong financial health. Ryanair's robust fuel hedging positions it well for the future amidst rising fuel prices.
- ▪Ryanair reported a 40% increase in profit after tax to nearly 2.3 billion euros.
- ▪Passenger traffic grew 4% to 208.4 million.
- ▪Revenue fell 11% to 15.54 billion euros.
- ▪The airline is not overly concerned about jet fuel supply due to diversified oil sources.
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"We're in obviously very volatile oil markets at the moment. If we go back a couple of months ago, we probably had some concern around oil supply, but we're increasingly confident that there won't be issues in relation to oil into this summer," Sorahan said. He explained that Ryanair is not "overly concerned" about jet fuel supply as Europe's dependence on the Strait of Hormuz is declining, with suppliers now getting oil from the likes of the U.S., Venezuela, and Brazil, among others.
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