Michael O’Leary has warned passengers could be hit by severe disruption as war hits jet fuel availability
Jet fuel supply dirruption will hit next month, Ryanairboss Michael O’Leary has said(Image: Getty)
Ryanair boss Michael O’Leary has warned passengers could be hit by severe disruption ‘next month’ if jet fuel starts to run out due to the Iran war. Jet fuel supplies could be disrupted in early May if the Middle East conflict continues, the boss of Ryanair has warned.
Oil prices have surged since the war in Iran broke out at the end of February due to Iran’s block on tankers passing through a key shipping passage, the Strait of Hormuz.
Speaking on Sky News Michael O’Leary said Ryanair was “reasonably well hedged” on 80% of its fuel but added it is paying almost double (at around $150 a barrel) on the other 20%.
He warned that rising oil costs were part of the “wider ramifications” of the conflict, but the more “immediate concern” was over jet fuel supplies.
“Fuel suppliers are constantly looking at the market. We don’t expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June, and we hope the war will finish sooner than that and the risk to supply will be eliminated,” he told Sky News.
“We think there is a reasonable risk, some low level, maybe 10% to 25% of our supplies might be at risk through May and June, so like everyone else in this industry, we hope the war ends sooner rather than later “If the war finishes by April and the Strait of Hormuz reopens, then there is almost no risk to supply.”
Despite this, he said he doesn’t expect to cancel any flights like some of Ryanair’s competitors.
EasyJet chief executive Kenton Jarvis has previously warned that European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
There are no supply chain issues for jet fuel “at this moment”, the Business Secretary said.
Speaking on Times Radio, Peter Kyle said: “I was looking immediately after the conflict started, where we interact in order to get resilience into our society, into our economy, we’ve been working with all these key sectors, identifying sectors where there may well be challenges down the track.
“We have no (fuel) supply chain issues at this moment at all.
“So people need to just realise that our country is well supplied when it comes to critical infrastructure and fuel.”
Asked about the supply of medicines following NHS England chief executive Sir Jim Mackey saying he was “really worried” about the issue on Tuesday, Mr Kyle added: “What the NHS boss said this week was that he was worried about live medicines, one very specific medicine type in the NHS.
“He has raised that concern, and we will look at that concern. But he is not talking about all medicine and all parts of the NHS.”
UK airlines are not experiencing disruption to their supply of jet fuel, according to an industry association.
An Airlines UK spokesperson said: “UK airlines are currently not seeing disruption to jet fuel supply and continue to engage with fuel suppliers and Government to monitor the situation.”