Ryanair’s CFO says the airline has plans for an ‘armageddon situation’ as the jet fuel crisis threatens weaker European airlines this winter
Ryanair's CFO has outlined the airline's strategy to navigate potential challenges posed by high jet fuel prices amid ongoing geopolitical tensions. Despite concerns over the impact of the Iran war on fuel supply, Ryanair has hedged a significant portion of its fuel costs, allowing it to maintain operations without immediate price increases. The airline remains optimistic about its performance, even as other carriers face difficulties due to rising costs.
- ▪Ryanair's CFO stated the airline is prepared for a potential 'armageddon situation' due to high jet fuel prices.
- ▪The airline has hedged 80% of its summer fuel at lower prices than last year, insulating it from immediate impacts of rising oil prices.
- ▪Ryanair's shares have fallen over 23% year-to-date, but the airline reported a 40% increase in profit after tax in its latest earnings report.
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The chief financial officer of one of Europe’s most prolific low-cost airlines says the company has come up with a plan for a potential ‘armageddon situation’ triggered by high jet fuel prices as the Iran war drags on. Recommended Video Neil Sorahan, CFO of RyanAir, said persistently high jet fuel prices may cause some airlines that were already struggling before the war to be hit even harder or potentially go out of business come winter. As for RyanAir, the company is prepared for even the worst possible situation if the conflict between the U.S. and Iran escalates. “Do we have plans for some kind of Armageddon situation? Of course, we do, but I don’t see that coming to pass.
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