Ryanair CEO expects to hedge 50% of next year's fuel, willing to take risk on remainder
Ryanair expects to hedge about 50% of next year's fuel, with the CEO willing to leave the other half unhedged. He said oil prices are more likely to fall from current highs and fares have reached an inflection point.
1. Fuel hedging outlook
Ryanair CEO said the airline expects fuel cover next year to reach around 50%, possibly 50% for the first half. He said he would be comfortable leaving the other 50% unhedged, adding that crude prices are more likely to roll off from current highs.
2. Fares and aircraft
The CEO said fares have reached an inflection point, with meaningful fare movement at a time when Ryanair would usually be stimulating prices. He said only 50% of third-quarter seats had been sold so far. Ryanair sought more than 16 Boeing MAX 10 aircraft for next spring but Boeing had no additional spare capacity and was still struggling to increase production, including challenges with wings and engines.
