October 28, 2008
Ryanair, Europe’s biggest low-cost airline, remains unhedged for its fuel needs for the remainder of the year, chief executive Michael O’Leary was quoted as saying on Tuesday.
Ryanair said in July it had hedged 90 percent of its September fuel needs at an oil price of USD$129 per barrel, 80 percent for its fiscal third quarter at USD$124 and remained unhedged for its fourth quarter, which starts in January 2009.
“Looking back it was stupid not to hedge on oil but we’re not hedged for the remainder of the year and that’s a good move,” O’Leary told the Irish Examiner newspaper in an interview.
O’Leary, who has often acknowledged getting his hedging policy wrong, had said on Monday the carrier would post a full-year profit if the oil price remains at USD$70 per barrel and that profit could rise to EUR400 million – EUR500 million next year.
Oil traded around USD$64 per barrel on Tuesday.
Ryanair is due to report first-half earnings on Monday.
(Reuters)
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