Ryanair Holdings has warned of rising costs this year if unhedged jet fuel prices remain at current levels, as well as due to increased costs for fuel, personnel, and aircraft maintenance. This was reported by Bloomberg, according to UNN.
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The Irish low-cost carrier stated that its unit costs in fiscal year 2027 could rise by a mid-single-digit percentage. The company also reported that about 20% of its fuel requirements, which were not covered by hedging, have become significantly more expensive. At the same time, 80% of Ryanair's fuel is locked in at a price of $67 per barrel, which the company says protects profits and provides an advantage over competitors.
At the same time, the airline noted that it is currently "premature" to provide accurate profit forecasts due to high fuel price volatility, supply instability, and uncertainty regarding the duration of the conflict in the Middle East.
The company's Chief Financial Officer, Neil Sorahan, reported that fuel costs have already risen "by several hundred million euros," without providing further details.
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The rise in fuel prices is linked to the war in the Middle East, which has created additional pressure on the aviation sector. For instance, major European airlines, including International Airlines Group and Lufthansa Group, reported increases in fuel costs of approximately 2 billion euros and 1.7 billion euros, respectively.
For the fiscal year ending March 31, net profit excluding one-off factors amounted to 2.26 billion euros, exceeding the company's forecast. Revenue grew by 11% to reach 15.5 billion euros.
Ryanair also noted that concerns regarding jet fuel availability during the peak season persist due to shipping restrictions in the Strait of Hormuz. Meanwhile, the company emphasized that Europe is supplied with fuel thanks to shipments from the US, Norway, and West Africa.
Additionally, the company's costs are rising due to EU environmental taxes, which could add another 300 million euros this year, as well as crew salary increases and aircraft maintenance costs.
Despite economic uncertainty and price pressure, Ryanair expects to carry 216 million passengers this year, which is 4% more than last year.
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