RYANAIR has warned that cheaper fares and higher fuel costs could hit the airline as the Iran conflict rattles the travel industry.
The budget carrier said ticket prices have fallen in recent weeks as worried customers hold back on spending.
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Ryanair has warned that the Iran conflict will hit fares and fuel costs Credit: Getty
Boss Michael O’Leary blames higher oil prices, fears over fuel shortages and the risk of inflation for lowering buyer confidence Credit: Reuters
Ryanair said yesterday it now reckons fares will fall in the three months to the end of June.
It had previously expected summer fares to rise slightly between July and September, but now says they are likely to stay broadly flat.
Boss Michael O’Leary said higher oil prices, fears over fuel shortages and the risk of inflation were weighing on consumer confidence.
The airline said it has already locked in prices for 80 per cent of its jet fuel needs.
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But the remaining 20 per cent has become much more expensive because of turmoil in the Middle East.
Dublin-based Ryanair warned if fuel prices stay high, its costs could rise by around five per cent in the 2026-27 period.
Despite the warning, the airline reported a 40 per cent rise in underlying after-tax profits to €2.26billion (£1.96billion) for the year to March 31.
Pre-tax profits rose 36 per cent to €2.42billion (£2.1billion).
But Ryanair said it was too early to give financial guidance for the year ahead because of uncertainty over demand and fuel prices.
Chief financial officer Neil Sorahan said the airline had plans for an “Armageddon situation” if jet fuel shortages worsened.
He added he did not expect that to happen.
Ryanair still plans to run a full summer and winter schedule.
£80BN LENDING BOOST
BANKS will have an extra £80billion to lend businesses under Treasury plans.
The Government wants to ease ring-fencing regulations brought in to protect ordinary savers after the 2008 crash.
It says the system needs to be more flexible to boost lending, investment and economic growth. The Treasury insists protections for customers will stay.
It was welcomed by major lenders including Natwest and Santander.
The Bank of England’s Prudential Regulation Authority will consult before publishing its findings this summer.
£2.9BN A STEEL
ANGLO AMERICAN is selling its Australian steelmaking coal mines in a deal worth up to £2.9billion.
The FTSE 100 mining giant has agreed to offload to UK-based miner Dhilmar, ahead of Anglo American’s planned £37.5billion merger with Canada’s Teck Resources.
The sale is expected to complete by early 2027, subject to regulatory approval.
INN TROUBLE
AN activist investor has told Premier Inn owner Whitbread to put itself up for sale.
US-based Corvex Management, which owns about seven per cent of the hospitality and hotel group, has called on it to hire an independent investment bank and launch a full-sale process.
Founder Keith Meister said Whitbread had underperformed and threatened to nominate new directors if its board refused to act.
