Ryanair CEO Michael O’Leary discusses the ‘incredibly high” costs of air travel in the US, the availability of jet fuel in Europe, and the potential for casualties among European airlines from higher oil prices.
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What Michael O'Leary said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Michael O'Leary, Ryanair's CEO, discussed the impact of Middle East conflict on European aviation. He said Ryanair is well-positioned due to 80% fuel hedging at $67 a barrel until March 2027, and reported record profits of €2.26 billion. He predicted weaker competitors, like Wizz Air and Air Baltic, could fail if the Straits of Hormuz remain closed. He dismissed the idea of Europe running out of jet fuel, citing adequate supply through September. He ruled out US expansion, focusing on European growth with 300 Boeing MAX 10 aircraft ordered during COVID. He criticized US carriers for lacking true low-cost models, noting Southwest's average fare rose to $40. He expects Europeans to holiday in Europe this summer due to expensive long-haul travel, with Gulf carrier capacity halved.
Key takeaways
Ryanair is 80% hedged on fuel at $67 a barrel until March 2027, protecting against oil price spikes.
Ryanair reported record full-year profit after tax of €2.26 billion and is returning cash to shareholders.
Ryanair ordered 300 Boeing MAX 10 aircraft, priced during COVID, with 20% more seats and 20% less fuel burn.
O'Leary predicts Wizz Air could fail and Air Baltic may struggle to repay a Latvian loan if the Straits of Hormuz stay closed.
Europe will not run out of jet fuel; supply is adequate through September, with no disruption from Iran conflict expected.
About five years ago, the Russians invaded Ukraine. Twenty years ago, the second Gulf War, the first Gulf War, 9/11. This happens regularly within our industry. That's why in Ryanair, we typically hedge 80% of our fuel. We're 80% hedged out to March 27, $67 a barrel. We're in great shape apart from the fact our share price has tanked in the last two weeks because they're, oh, they're an airline. Oh, god. Hell. We're just reporting record full year results. February passengers, €2.26 billion profit after tax, spitting off cash to shareholders, share buybacks. And with a bit of luck, if this continues, although, you know, we can all have a debate how long we think this will continue in the Middle East and with the Straits, for most, some of the flaky competitors in Europe will get taken out in carrier baskets by about September, October because they're not hedged on oil, and they're borrowed up to the right balls in net debt.
We are certainly ready to buy cheap aircraft. If anything, you got any cheap aircraft? I'm really excited. We are about to get the first 10 of our MAX 10 aircraft, first 15 of our MAX 10 aircraft from Boeing in 2027. 20% more seats per plane, burns 20% less oil. The technological efficiency of the new engines is remarkable. And we will take, we ordered, we've ordered 300 of those from Boeing. We priced them during COVID, so we've basically stolen them. And they will transform even our operating economics in Europe for the next decade.
There is nothing in Europe you would want to buy. It's all crap. You know, it will go bust, you know, in the not too distant future. Europe is inexorably, you know, moving the same direction the US did twenty years ago. Three large connecting carriers, BA, Lufthansa, Air France, KLM, they are making out like bandits at the moment because all the long haul connecting traffic has switched off the Gulf carriers and is going on those legacy guys. Short haul, Ryanair will continue to dominate the short haul space in Europe because we have much lower fares and much lower cost. We're the only really low fare low cost carrier in Europe. There's a few other low fare, not so low cost carriers in Europe, but they're all good too. They're all gonna go the same way as Spirit and Frontier in the States.
That's what I wanted to ask. It seems like the model in the US is really struggling. We had Spirit go bankrupt. There's talk of mass consolidation among some of the other low cost carriers and this idea that every consumer is expecting higher quality and that that is what's generating a lot of the revenues. How does Ryanair succeed in that environment, in that demand backdrop?
Mean, the problem for the last twenty years in the States is there's really been no low cost carriers anymore. I mean, we copied out this formula originally from Southwest back in the late nineteen eighties when Herb Kelleher was in his pump. You know, Southwest were charging 10 dollar fares. Now Southwest average fare last year was a 40. It's not a low fare carrier anymore. If you had a real low fare carrier here in the States as Ryanair is in the US, our average fare last year was $40. There would still be very strong demand because the main airlines here, I mean, they've had control of the supply in the market for the last twenty years, and they've been pricing up. The cost of air travel in the States is incredibly high, particularly given that you don't pay for ATC.
O'Leary, M. (2026, May 18). Europe Won’t Run Out of Jet Fuel, Ryanair CEO Says [Interview transcript]. Bloomberg Television. CEOInterviews.AI. https://ceointerviews.ai/interview/916712/
MLA
Michael O'Leary. "Europe Won’t Run Out of Jet Fuel, Ryanair CEO Says." Bloomberg Television, 18 May. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/916712/.
BibTeX
@misc{oleary2026_916712,
author = {Michael O'Leary},
title = {Europe Won’t Run Out of Jet Fuel, Ryanair CEO Says},
howpublished = {Interview transcript, Bloomberg Television. CEOInterviews.AI},
year = {2026},
month = {may},
url = {https://ceointerviews.ai/interview/916712/},
note = {Speaker-attributed transcript with timestamps}
}
