Michael O’Leary has warned that disruptions to jet fuel supplies could begin in early May if the Middle East war continues, with potential impacts on Europe emerging in the early summer months.
Speaking to Sky News, he said the airline and its fuel partners are “constantly monitoring the marketplace”, adding: “Hopefully, the war will finish sooner than that and the risk to supply will be eliminated”, reports RTE.
Mr O’Leary said the airline is “reasonably well hedged”, with around 80% of its fuel secured in advance until March 2027.
He explained that if the conflict ends and the Strait of Hormuz reopens by mid or late April, there would be no threat to jet fuel supply, reports RTE.
However, he warned that if disruption continues, there could be a “reasonable risk” that between 10% and 25% of supplies may be affected during May and June.
He added that while Ryanair expects no disruption until at least mid-May, the risk of higher fuel prices will persist through April, May and June, reports RTE.
Mr O’Leary also noted that rival airlines such as Wizz Air and easyJet have already reduced capacity by about 5% over May and June.
He said Ryanair has not cut any flights and intends to continue expanding during the crisis, expressing confidence that its fuel supplies remain secure, reports RTE.
Darragh O’Brien said Ireland is being affected by a volatile and rapidly changing energy situation, stressing that energy conservation is “really important”.
He said the country has strong energy reserves and that a public information campaign will soon be launched to help people manage energy use, reports RTE.
The minister added that the Government is not currently considering restrictions on supply, but is treating the situation seriously and encouraging households to reduce consumption.
He also confirmed that a temporary reduction in the NORA levy on fossil fuels has taken effect, lowering costs by 2 cent per litre, reports RTE.
Micheál Martin warned that if the war in Iran continues and the Strait of Hormuz remains closed, the economy could face a major energy supply shock.
He described the situation as “very serious” and said it is “extremely difficult to be certain” about what lies ahead, reports RTE.
Simon Harris said the world is currently experiencing the largest energy crisis in history, highlighting the scale of damage already done to global energy infrastructure.
He noted the conflict has lasted around 33 days and warned of worsening impacts the longer it continues, reports RTE.
At EU level, Dan Jørgensen urged member states to reduce fuel demand and prepare for potential supply challenges.
“It is clear that the more you can do to save oil, especially diesel, especially jet fuel, the better we are off,” he said, warning that demand reduction may become necessary, reports RTE.
The European Commission has said that while supply is not currently an issue, high energy prices remain a major concern.
To mitigate the impact, EU countries have coordinated the release of around 400 million barrels from strategic reserves through the International Energy Agency — the largest such release on record, reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.
