Ryanair warns of summer fare hikes as Iran war disrupts fuel supply
Airline urges early bookings as jet fuel prices surge and risks to European supply loom
Ryanair has urged passengers to book holidays and flights “as soon as possible” to ensure they are “insulated from inevitable airfare and accommodation cost increases” expected due to the Iran war.
Global oil and gas supplies have been disrupted, as shipments through the critical Strait of Hormuz waterway have mostly been halted since the Iran war began on February 28. The price hikes are expected to impact the cost of travel.
Europe's biggest airline, Ryanair - a main carrier for Malta - said:
“We don’t expect any near-term fuel shortages, but the situation is fluid. At present, our fuel suppliers can guarantee supply to mid-end May. If the Iran war finishes soon, then the supply will not be disrupted. If the closure of the Hormuz Straits continues into May or June, then we cannot rule out risks to fuel supplies at some airports in Europe.”
The spokesperson added: “With jet oil prices doubling during March, we expect all airlines will pass on these higher costs in the form of higher air fares post Easter and later this summer. We urge all passengers to book their flights (and holidays) as soon as possible, and then they will be insulated from inevitable airfare and accommodation cost increases after Easter and later this summer.”
A few weeks ago, Ryanair CEO Michael O'Leary warned that jet fuel supplies could be at risk if the Iran war continues for another month."We don't expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June," he told Sky News on Wednesday.
He added that 10% to 25% of Ryanair's supplies could be at risk through May and June. "So like everyone else in this industry, we hope the war ends sooner rather than later."
Jet fuel prices have been more volatile than oil since the war started. While Brent crude is up about 50% over the past month, jet fuel has doubled, according to statistics shared by the International Air Transport Association.
Meanwhile, when asked if oil prices would impact sea travel to Sicily, a spokesperson for Virtu Ferries said: “As at today our company has not introduced a fuel surcharge, obviously the situation is being reviewed continuously.”