Ryanair Suspends Guidance after 103% Jet Fuel Price Surge to $150
Ryanair suspended its financial guidance as jet fuel prices have risen 103% to $150 per barrel since the Iran war, impacting the 20% of its fuel costs not covered by hedges. The carrier diversified fuel supplies, plans full summer schedules and forecasts flying 216 million passengers, a 4% increase.
1. Fuel Price Surge and Guidance Halt
Jet fuel prices have risen by 103% to near $150 per barrel since the Iran war triggered Strait of Hormuz closure fears. In response to soaring costs and supply uncertainty, Ryanair suspended its full-year financial guidance.
2. Hedging Coverage and Exposure
Ryanair hedges approximately 80% of its jet fuel requirements at pre-agreed prices, shielding most costs from market swings; however, the remaining 20% is exposed to current high prices, increasing operating expenses.
3. Diversified Fuel Sourcing
To secure supply, the carrier expanded jet fuel procurement beyond Gulf sources to include shipments from West Africa, the Americas and Norway, stabilizing short-term availability despite elevated global prices.
4. Demand Outlook and Share Performance
Ryanair expects to maintain full summer schedules and predicted flying 216 million passengers (up 4%) over the next year. Shares slipped about 2% on the guidance suspension, while industry leaders warn that rising fuel costs may push weak competitors out of the market.