Airline Reveals 'Doomsday' Scenario and Issues Warning
The airline Ryanair has prepared itself for a ‘doomsday’ situation amidst the aviation fuel crisis. This was stated by the Chief Financial Officer of the European low-cost carrier during an interview with CNBC International, reported on Monday (18/5/2026).
“Do we have a plan for such a doomsday situation? Of course, we do, but I do not see it happening,” asserted Neil Sorahan. “I think we will see some weaker airlines that were already struggling before the war may go bankrupt during the winter,” he added.
The Irish airline has hedged 80% of its summer fuel at a price of US$668 per metric tonne, driven by economic uncertainty caused by conflicts in the Middle East and the ongoing blockade of the Strait of Hormuz. However, Sorahan stated that the airline is “not planning any flight cancellations” and remains optimistic about the company’s performance.
“Currently, we are in a very volatile oil market,” he said. “If we look back a few months, we might have had some concerns regarding oil supply, but we are increasingly confident that there will be no issues regarding oil through this summer.”
He further explained that Ryanair is not overly concerned about jet fuel supply as Europe’s dependence on the Strait of Hormuz is decreasing. According to him, the company has secured alternative suppliers from countries such as the USA, Venezuela, and Brazil. “Nevertheless, I think prices will remain higher for longer, which places Ryanair in a very strong position, given our strong fuel hedging,” he added.
Previously, Ryanair CEO Michael O’Leary predicted that many airlines would go bankrupt if jet fuel prices remain high. Spirit Airlines in the US recently filed for bankruptcy after the jet fuel crisis exacerbated long-standing issues, including heavy debt burdens and surging costs. “I think there will be failures,” said O’Leary. “If prices continue at US$150 per barrel through July, August, and September, then you will see European airlines failing, and in the medium term, that might be good for Ryanair’s business.”
Ryanair reported a 40% increase in after-tax profit to nearly 2.3 billion euros for the year ending in March, while passenger traffic grew by 4% to 208.4 million. Revenue decreased by 11% to 15.54 billion euros.
Although summer fares were initially expected to rise slightly, they are now projected to remain stable, with final results depending on last-minute bookings during the peak travel period. The airline noted an increase in last-minute bookings, which has reduced visibility. “Ryanair was forced to lower prices to attract customers at the start of the summer, but prices will look similar to last year in the company’s second quarter,” an analyst from Citi noted in a report on Monday. “The company indicated ‘strong’ travel demand for S26 [Summer 2026], but bookings are closer to the date than usual, and prices have dropped in recent weeks due to economic uncertainty regarding fuel prices, inflation, and concerns over fuel shortages.”