Europe Won’t Run Out of Jet Fuel, Ryanair CEO Says
Speakers
Michael O'Leary
— CEO, Ryanair Group
Summary
Ryanair CEO Michael O'Leary discusses the airline's strong fuel hedging, record results, and growth plans. He predicts that unhedged European rivals like Wizz Air may fail if oil stays high, but sees no jet fuel shortage in Europe. He also criticizes US airfares as incredibly high.
- Ryanair has hedged 80% of fuel at $67/barrel through March 2027.
- O'Leary expects some European low-cost carriers to fail due to lack of hedging.
- He specifically names Wizz Air as a candidate for failure.
- Ryanair ordered 300 Boeing Max 10 aircraft at low COVID prices.
- O'Leary sees strong demand for European short-haul travel this summer.
- He believes the Straits of Hormuz closure will not disrupt European jet fuel supply.
- O'Leary says US air travel costs are incredibly high due to lack of low-cost competition.
Trade Ideas
Ryanair is undervalued with strong hedge and growth.
Ryanair is strongly positioned due to 80% fuel hedging at $67/barrel through March 2027, record profits, share buybacks, and a cheap order of 300 Boeing Max 10 aircraft that will improve efficiency. The company dominates European short-haul with low costs and expects to grow passengers to 300 million. The market is overly punishing the stock due to sector fears, but Ryanair's fundamentals are excellent and it will benefit from competitor failures.
Wizz Air will fail if oil stays high.
Wizz Air is a likely candidate for failure if the Straits of Hormuz remains closed and oil prices stay elevated, because it is not hedged on fuel and carries high net debt. The airline is a low-fare but not low-cost carrier with a weak balance sheet, making it vulnerable to rising costs and likely to go bust by late summer.
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This Bloomberg Markets video, published May 18, 2026, features Michael O'Leary discussing RYAAY, WIZZ. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Michael O'Leary · Tickers: RYAAY, WIZZ