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The CEO of Ryanair, Europe’s biggest airline, warned that a quarter of its fuel supply is under threat

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The boss of Europe’s biggest airline has warned that jet fuel supplies could be at risk if the Iran war continues for another month.

“We don’t expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June,” Ryanair CEO Michael O’Leary told Sky News on Wednesday.

He added that 10% to 25% of Ryanair’s supplies could be at risk through May and June. “So like everyone else in this industry, we hope the war ends sooner rather than later.”

Jet fuel prices have been more volatile than oil since the war started in late February. While Brent crude is up about 50% over the past month, jet fuel has doubled, according to statistics shared by the International Air Transport Association.

Ryanair and its subsidiaries make up Europe’s biggest airline group by passenger numbers, carrying over 200 million last year.

It has suspended its 12 flights to Jordan due to the conflict, O’Leary said, but jet fuel is the more immediate concern.

While the budget airline has hedged about 80% of its fuel costs until next March, that leaves about 20% exposed to price rises, the CEO told Sky News.

However, O’Leary was not concerned about canceling many flights.

“Most of Europe takes most of its jet fuel supplies from America, western Africa, and Norway,” he told Sky News.

Although he added that some suppliers are more dependent on the Middle East, too.

“We think our supplies are secure and we intend to continue to grow through this crisis,” O’Leary said.

Ryanair has also benefited from more Europeans looking to travel closer to home over the Easter break.

“Lots of families who would have been going either to the Middle East or flying over the Middle East to go to Asia have all rebooked, and they’re going to Italy, Portugal, Spain, Greece,” O’Leary told Virgin Media News on Wednesday.

“They’re all certainly staying much closer to home over the Easter school holiday,” he added. “People are not yet changing their summer holiday plans, but that’s likely to happen if this war continues.”

O’Leary also recommended that people book their flights as soon as possible, due to the risk that airfares continue to rise.




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Elon Musk says Europe’s biggest airline will lose customers without Starlink

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The CEO of Europe’s biggest airline is in an escalating war of words with Elon Musk over Starlink.

Ryanair CEO Michael O’Leary isn’t convinced by Starlink, Musk’s satellite internet provider, which is becoming more popular among airlines.

For example, Lufthansa — the German flag carrier which runs the continent’s second-largest airline group — announced on Tuesday that it would introduce the service. The following day, Scandinavian Airlines operated its first flight with Starlink.

However, as a budget airline, Ryanair is known for its no-frills offering.

“We don’t think ‍our ⁠passengers are willing to pay for WiFi for an average ⁠one-hour flight,” O’Leary told Reuters on Wednesday.

His comments sparked a debate on X. Musk said in a post: “They [Ryanair] will lose customers to airlines that do have internet.”

In a subsequent interview on Irish radio on Thursday, the outspoken Ryanair boss said adding Starlink would cost the airline between $200 million and $250 million a year.

“In other words, about an extra dollar for every passenger we fly, and the reality for us is we can’t afford those costs,” he told Newstalk.

“Passengers won’t pay for internet usage; if it’s free, they’ll use it — but they won’t pay one euro each to use the internet.”

He then hit back at Musk, saying people should “pay no attention whatsoever to Elon Musk.”

“He’s an idiot. Very wealthy, but he’s still an idiot,” O’Leary added.

Ryanair and its subsidiaries operate a fleet of 643 airplanes, which handled 206 million passengers last year. 2024’s statistics showed that it was the world’s third-largest airline group, behind American Airlines and Delta Air Lines.

The Irish airline’s low-cost business model allows it to offer tickets as low as 15 euros, or about $17.40. It focuses on quick turnarounds between flights, charging for add-ons like sitting next to your friends, and on-board sales, including scratchcards and duty-free cigarettes.

Every airline that’s announced Starlink deals so far has included free in-flight internet for everyone on board. So, even if O’Leary changed his mind, it seems unlikely that Musk’s company would let him charge Ryanair passengers to use Starlink.

SpaceX executives also took umbrage at what they said was incorrect information about the fuel costs incurred by installing Starlink.

“You need to put [an] antenna on [the] fuselage — it comes with a 2% fuel ⁠penalty because of ​the weight and ​drag,” O’Leary told Reuters.

Michael Nicolls, the VP of Starlink engineering, said in an X post that Starlink terminals have a more fuel-efficient profile than other airplane internet providers. He added that SpaceX’s analysis showed a Starlink terminal instead increased fuel costs by 0.3% on a Boeing 737-800, the model that makes up the bulk of Ryanair’s fleet.

“Hmm, must be a way to get that down under 0.1%,” Musk replied to him.

Ryanair declined to comment on Musk’s and Nicolls’ remarks when contacted by Business Insider. SpaceX did not immediately respond to a request for comment.

While US budget airlines have recently pivoted to offer more premium options under intense financial pressures, Ryanair has little reason to do so. Adding an amenity like Starlink would be at odds with its business model, especially if it were free for passengers.

Post-pandemic, more American travellers have been paying extra for more luxurious flights. Budget airlines have also struggled to compete on price with legacy carriers.

But on the other side of the Atlantic, Ryanair has managed to balance a spartan approach with financial success.

In its latest quarterly earnings, Ryanair posted after-tax profits of 1.72 billion euros, about $2 billion — a 20% increase from a year earlier. Southwest Airlines’ latest quarterly earnings were down nearly 20% year-over-year to $54 million.




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