Ryanair has issued a new update regarding jet fuel levels for flights in June, July, and August. The Irish carrier is 'confident' it will avoid a jet fuel shortage but has also warned of potential fare increases in the future.
The airline, which operates from Birmingham, notes that travellers are delaying their bookings, and those purchasing flights later this year could face higher prices. Neil Sorahan, chief financial officer of the budget airline, stated he is 'increasingly confident that we will not see any supply shocks this summer.'
'Demand is still strong, but people are leaving it longer to book, so we do not have the visibility that we normally have for July to September,' Sorahan said. 'Closer-in bookings are strong, but if people leave it late, they could take on higher fares,' he added.
Dan Coatsworth, head of markets at AJ Bell, commented that the market is 'too fragile' to raise fares in response to rising costs, as higher inflation continues to squeeze consumer spending. He said: 'Airlines and holiday companies are having to drop prices, or at best keep them level, just to keep demand ticking over. If cost pressures remain intense, they will have no choice but to put prices up. Fortunately, Ryanair has a strong enough balance sheet to weather any storms.'
Ryanair, which competes with Jet2, TUI, Easyjet, and others, reported that bookings are increasingly being made at the last minute, though demand remains 'robust.' The airline expects to fly 4% more passengers over the year to March 2027, reaching 216 million, matching the 4% growth seen in 2025-26.
Ryanair’s shares on the Euronext Dublin fell 3% amid the uncertain earnings outlook, with its UK-listed rivals also seeing share declines on Monday morning. The company posted a 40% rise in underlying after-tax profits to 2.26 billion euro (£1.96 billion) for the year to March 31, which is slightly better than expected.
