Ryanair CFO States Airline Has Contingency Plan for Jet Fuel Prices

Ryanair CFO Neil Sorahan said the airline maintains contingency plans for a potential severe disruption caused by high jet fuel prices amid the ongoing Iran conflict. Sorahan told CNBC that persistently high fuel prices could further strain some European carriers already facing financial pressure. He added that Ryanair itself is prepared for extreme scenarios but does not expect them to occur.

Sorahan stated that Ryanair has hedged 80 percent of its summer fuel requirements at prices lower than those paid last year. The airline plans to operate a full schedule through the summer and into the winter period. He said the company has not ruled out fare increases but will set prices based on demand to fill flights. No fuel surcharges are currently planned.

Brent crude prices have risen to about $111 per barrel, an 18 percent increase from a month earlier, following disruptions tied to the Iran conflict and control of the Strait of Hormuz. A Goldman Sachs note warned that Europe's jet fuel supply could fall below a 23-day threshold within weeks, potentially leading to rationing or flight cancellations.

Ryanair CEO Michael O'Leary said the airline met with fuel suppliers in Paris last week and reported no current supply issues through September.

Ryanair have fallen more than 23 percent year-to-date.

3 billion euros and a 4 percent rise in passenger traffic. Sorahan noted that other European carriers with high debt may face greater challenges, while Ryanair's hedging strategy could provide a competitive advantage.