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Ryanair Braces for Winter Carrier Failures as Fuel Costs Bite

Ryanair's chief financial officer warned that financially weakened European airlines may not survive the winter amid elevated jet fuel costs, even as the budget carrier projects a full schedule through the season.

Ryanair has hedged 80% of its summer fuel requirements at $668 per metric ton, citing Middle East tensions and shipping disruptions as reasons for the precaution. The carrier does not anticipate summer cancellations.

CFO Neil Sorahan told CNBC the airline has contingency plans for severe supply disruptions but expects current market conditions to stabilize. He cautioned that carriers already burdened by debt and high operating costs face potential collapse in coming months. Sorahan pointed to Spirit Airlines as a precedent, noting that airline collapsed after the jet fuel crisis compounded its longstanding issues.

Ryanair reported full-year after-tax profit increased 40%. Its stock closed up 6% on the earnings announcement, though shares remain down 22% year-to-date.