Ryanair keeps Morocco flights intact thanks to fuel hedging strategy

09:16

By: Dakir Madiha

Ryanair keeps Morocco flights intact thanks to fuel hedging strategy

Ryanair has confirmed it will maintain its full summer flight program in Morocco, shielding itself from the fuel price surge triggered by the ongoing conflict involving the United States, Israel, and Iran, which has severely disrupted jet fuel supplies through the Strait of Hormuz. While the broader aviation industry absorbs the impact of an more than 80% rise in jet fuel costs since late February, the Irish low-cost carrier says its forward hedging strategy has insulated it from the worst of the volatility.

The airline has locked in approximately 80% of its fuel requirements through the end of March 2027 at around $67 per barrel, a price significantly below current market levels. Company chief executive Michael O'Leary stated publicly that the risk of fuel shortages forcing flight cancellations across Europe this summer had dropped to near zero. The hedging position gives Ryanair a structural cost advantage over competitors that did not secure similar protection, allowing it to hold pricing and capacity steady while others are forced to adjust.

The contrast with Morocco's national carrier is stark. Royal Air Maroc announced last week the temporary suspension of 12 routes connecting Casablanca, Marrakech, and Tangier to destinations across Africa and Europe, citing rising kerosene prices and weakening demand on affected routes. Suspended services include links from Casablanca to Kinshasa, Brazzaville, Yaoundé, and Libreville, as well as routes from Marrakech to Lyon, Marseille, Bordeaux, and Brussels, and connections from Tangier to Malaga and Barcelona. The suspensions reflect the broader pressure facing airlines without strong fuel cost coverage in a high-price environment.

Analysts estimate the global airline industry could face an additional $14 billion in fuel costs in 2026 if the current disruption to supply routes persists. Jet fuel flows are being rerouted along longer and more expensive trade paths as traffic through the Strait of Hormuz remains constrained. Even though oil prices retreated somewhat from their late-April peak, they remain well above pre-conflict levels, sustaining pressure on carriers relying on spot market purchases.

Diplomatically, no resolution appears imminent. Iran stated on Friday that it has not reached a final agreement with the United States despite signals from President Donald Trump suggesting progress. Tehran said key issues remain unresolved, including the management of the Strait of Hormuz, which Iran's Foreign Ministry argued should be handled jointly with Oman rather than under external pressure. Iranian officials also rejected Washington's demand that Iran commit never to develop a nuclear weapon, framing the decision as a matter of national sovereignty. Iran's Foreign Ministry spokesperson said any lifting of what Tehran described as an illegal naval blockade on the waterway would need to be verified through concrete action, not political statements. Until a durable agreement is reached, the disruption to global fuel markets and aviation supply chains is expected to continue.