16.08.08
An uncharacteristically repentant Michael O'Leary admitted he had ‘screwed up’ by failing to insulate Ryanair against massive rises in the price of oil over the last 12 months, the Belfast Telegraph reports. The decision contributed to an 85% drop in the airline's profits for the first quarter, and could see it suffer its first annual loss in 20 years.
Mr O'Leary told a news conference: ‘Clearly anybody who did not hedge a year ago at €70 could not possibly claim that they were on top of their game,’ adding that he'd ‘screwed up in the last year’. The chief executive added that it was a ‘good thing’ that he is one of Ryanair’s biggest shareholders, because when he messes up it ‘costs me more money than almost everyone else’.
While falling oil prices mean there is ‘every chance’ Ryanair's 2009 results could be better than the airline's recent forecasts, it is not changing its full-year guidance, Mr O'Leary added. He also confirmed his airline has not been asked for an opinion on Aer Lingus' next chairman, despite the low-cost carrier's 29.82% stake in its competitor.
Mr O'Leary said Ryanair has not increased its fuel hedges since it reported first-quarter results in late July, because ‘the price of oil is still falling’. At the end of July, the airline said that it had hedged 90% of its September fuel at $129 a barrel, and 80% of third-quarter fuel at $124 a barrel. It is currently completely unhedged for its forth-quarter.
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