“I think it is inevitable that prices will rise in the summer, particularly if oil remains at 100 dollars per barrel”, says CEO Michael O’Leary, in an interview with Lusa. Still, “Ryanair is in a very favourable situation, as we have covered about 80% of our fuel until March 2023 [purchased] at between 64 and 73 dollars a barrel, so at least we bought our fuel”, added.
At a time when Brent prices hit highs, Michael O'Leary says he predicts "price increases coming mainly from other airlines that are not well covered and that will have to pass on these much higher oil prices". “We are not price takers [companies that accept the price formed in the market] and, therefore, we manage our business to fill our flights”, said Michael O'Leary.
Strong summer
Ryanair guarantees “very strong” reservations for flights to Portugal this summer, considering that Portuguese beach tourism will be “one of the beneficiaries” of the post-pandemic recovery and geopolitical tensions caused by the Ukraine war, given its location. “Right now, bookings for places like Portugal and Spain […] are very strong for this summer. The beaches of Western Europe will be the main beneficiaries of both the recovery from Covid-19 and the war in Ukraine”, said Michael O’Leary.
So “there will be fewer people traveling in Eastern Europe and more people in Western Europe, but I don't have numbers yet”, adds the head of the Irish low-cost airline.
In Portugal, Ryanair is convinced of an operational activity superior to the pre-pandemic. “It will grow above pre-Covid-19 traffic levels”, predicts Michael O’Leary, also recalling the new base with two aircraft in Madeira.