Summary

Ryanair chief executive Michael O’Leary has said that every airling will be ‘hurting’ next year as a result of flights being cancelled due to the fuel crisis. Continuing high fuel prices linked to the war in the Middle East show no signs of falling in the near future, meaning airlines are facing an uncertain winter spell. The price of jet fuel surged from its long-term average around $100 per barrel to over $200 per barrel after the blockade of the Strait of Hormuz began in February of this year. At one point in August, it peaked at more than $1,500 per barrel. Speaking to the Financial Times, Mr O’Leary said: This is a full-blown crisis. Everybody is going to be hurting next year . . . we are just trying to trim the ship as much as we possibly can.” He added that he believed the fuel crisis would continue until 2028 at the earliest. Ryanair reported a sharp decline in profit for the first quarter of the financial year. Profits fell 34pc as higher oil prices and weaker demand squeezed the Irish airline’s bottom line. Profit after tax fell to €538m, from €820m in the three previous months, as the war in Iran cast a shadow over consumer demand and hiked costs. Two weeks ago, the company pledged to have a “record” summer schedule out of Dublin Airport next year – if an IAA proposal of cutting passenger charges at Dublin Airport is finalised. It said that cutting passenger charges at Dublin Airport is a “critical opportunity to restore growth and competitiveness to Irish aviation”. The airline made the comments in a submission to the Irish Aviation Authority (IAA) as it considers the level of charges that will be permitted at the gateway between next year and 2031. The Dublin Airport Authority had sought a €12.86 average base-price cap for the 2027-2031 period. That included a maximum charge of €13.85 by 2030 and €14.99 by 2031.