European airlines have enough fuel for the summer, according to Ryanair chief executive Michael O’Leary.
The airline boss conceded that his group had been “very worried” two months ago about a shortage of jet fuel.
Europe is now sourcing fuel from west Africa, the Americas and Norway, cutting dependence on the blocked Strait of Hormuz, O’Leary said.
But he warned that prices have risen, from around $70 (€60) a barrel before the Middle East conflict erupted in February to hit about $140 at one stage.
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Ryanair has bought 80 per cent of what it needs up to the end of March next year at about $67 a barrel, but will still have to foot the bill for the other 20 per cent.
O’Leary also warned that Ryanair would halt any expansion of the airline at Dublin Airport if charges rise there on the back of State company DAA’s €5.6 billion plan to expand the gateway.
Branding the plan “a waste”, he argued that the airport would get the same level of passenger growth that it is seeking simply by adding a new pier to terminal one for about €100 million.
Ryanair argues that the plan could double what Dublin Airport charges airlines for passengers to €40 per person, which the company says could be added to air fares.
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DAA calculates that its plan will allow the airport to cater for 10 million extra passengers, boosting traffic to more than 45 million a year.
The airports company maintains that it will increase passenger charges to €13 on average from a maximum of €10.50 now.
O’Leary pointed out that London Stansted Airport, one of Ryanair’s biggest bases, will spend £1.1 billion (€1.2 billion) to increase passengers to 43 million from 30 million.
Spanish company Aena proposes investing €9 billion across 46 airports over five years to increase total traffic to 400 million from 320 million, he added.
DAA’s plan includes fitting land bridges to its proposed extension to terminal one where Ryanair is responsible for 80 per cent of traffic but “does not use airbridges,” O’Leary said.
Similarly, he argued that Ryanair passengers would not use new airport lounges the DAA intends to build in Dublin.
O’Leary highlighted that the company had provided €1.5 billion for inflation and contingencies and €490 million for sustainability, which includes a €7 million bill for planting wildflowers.
European airline capacity will remain squeezed to the end of the decade, leaving airports competing for traffic, he said.
“It’s a very competitive environment and we are the only show in Europe if you want growth,” said O’Leary.
He cautioned that Ryanair would shift planes to Sweden, Italy and other regions in Europe where airports are cutting charges and focusing on efficient growth.
Conversely the airline could grow passenger numbers at Dublin to 23.5 million in 2032 from 17.7 million in 2025, if DAA freezes charges and the Oireachtas passes a law axing the airport’s 32 million-a-year passenger limit.
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O’Leary calculates that since its second runway opened, Dublin could handle up to 60 million passengers a year, which would involve some expansion of its building.
DAA responded that O’Leary’s claims that passengers do not want lounges was wrong.
Lounges in both terminals were “consistently full last year” and the airport had to turn passengers away, said the company.
DAA stressed that it would not spend €7 million on wildflowers but on obligatory habitat replacement.
