Michael O’Leary, the chief executive of Ryanair, has highlighted that the risk of fuel shortages in Europe is receding. He now believes that flights are guaranteed until the end of July, a significant improvement from just a few days ago when certainty only extended to the end of May.
The airline boss confirmed he is in contact with major fuel suppliers who state they are securing provisions to mitigate any risks. It appears that the process for using Jet A fuel from the United States in Europe has been simplified. While Europe typically uses Jet A1, the two are essentially the same in practice.
In addition to the fuel outlook, Ryanair announced it is lowering prices between June and September to stimulate travel demand. This move by the low-cost carrier could confirm the struggles of many competitors while allowing the Irish airline to capture new market shares. Mr O’Leary frequently uses periods of crisis to strengthen his airline’s market position, a strategy previously seen immediately following the pandemic.
Previously, the chief executive had predicted that ticket prices would rise by between 4 and 5 per cent this year compared to last. However, given current market trends, he now suggests that prices are moving towards the same level as last year. He reiterated his belief that this crisis could lead to the collapse of some airlines, noting that the current evolution of prices is likely to contribute to such outcomes.
