Airline chief predicts profits to rise as fuel hedging strategy pays off

RYANAIR is forecasting an increase in profit of between 5% and 10% over the next 12 months after hedging most of its fuel needs for this summer.

Chief executive Michael O’Leary said: “We have taken advantage of the recent short-term fall in oil prices to hedge 90% of our needs from June to October of this year, at an average price of $70 a barrel.”

He added that the airline will remain unhedged from October onwards but will continue to seek hedging opportunities in the future if suitable pricing opportunities present themselves.