Ryanair issues urgent warning to British travellers

The low-cost airline pointed to ongoing conflict in the Middle East and related economic uncertainty as key factors pressuring prices and demand.

While it has hedged 80 per cent of its fuel needs, the cost of the remaining 20 per cent has surged.

Michael O’Leary, chief executive of Ryanair, said: “Pricing in recent weeks has eased somewhat in response to economic uncertainty caused by higher oil prices, the fear of fuel shortages, and the risk of inflation adversely impacting consumer spending.”

Despite booking a 36 per cent rise in pre-tax profits to €2.42 billion (£2.1bn) in the year to March 31, and a 40 per cent increase in underlying after-tax profits to €2.26bn (£1.96bn), the airline said it was “far too early” to provide guidance for the current financial year.

The carrier now expects first-quarter fares to fall by a “mid-single digit” percentage, with no growth forecast between July and September.

Mr O’Leary said: “The conflict in the Middle East has created economic uncertainty and we still don’t know when the Strait of Hormuz will reopen.

“Despite this, Europe remains relatively well supplied with jet-fuel, with significant volumes sourced from west Africa, the Americas and Norway.”

Bookings are increasingly being made at the last minute, though overall demand remains “robust,” according to the airline.

Ryanair plans to carry 216 million passengers by March 2027, reflecting year-on-year growth of four per cent.

The board and Mr O’Leary are close to finalising a four-year contract extension for the CEO, from the end of March 2028.

The proposed extension includes 10 million shares awards, contingent on achieving “very ambitious profit after tax or share price growth targets.”

It said: “These discussions have almost concluded and engagement with the group’s largest institutional shareholders will commence in the coming days.”

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