Russia's invasion of Ukraine will not have a dramatic effect on bookings in eastern Europe as long as the war does not escalate, Ryanair chief executive Michael O'Leary has said.

The Irish airline suspended all flights to and from Ukraine for at least two weeks after Russia invaded its neighbour, and O'Leary said the budget carrier is well-placed to deal with oil prices, which have surged in the days following Moscow's military action.

O'Leary said bookings were down 20% last Thursday and Friday compared to the previous week and around 10% over the weekend, but told reporters that he believed the hit on demand would be short-lived.

"I think you will not have a dramatic impact on bookings as long as the period of war doesn't escalate and spread elsewhere," O'Leary said. "If nothing untoward happens, I expect [bookings] would be back to normal by next week."

Oil prices have risen to over $100 (€90) per barrel since the start of the invasion, but O'Leary said the inflated costs would be a bigger problem for Ryanair's rivals.

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He said that Ryanair's recovery from two Covid-hit summers would be driven by its "somewhat fortuitous fuel-hedging strategy, which means we can pass on the benefit of oil at $65 a barrel for almost all of the next 12 months."

Ryanair is 80% hedged on fuel until 2023, but rising prices will still cost the airline an estimated €50m over the next 12 months, O'Leary said, adding that the company would not introduce fuel charges for the summer.

He also vowed that Ryanair would be the first airline to return to Ukraine once it reopens, which could be this year depending on the extent of the damage to its airport infrastructure.

O'Leary pointed to the huge demand for flights to and from Polish cities as many Ukraines attempt to reunite with friends and families via airports in their home country's western neighbour. He also said customers in Ireland and Britain would be desperate for foreign holidays in 2022.

"I think you're going to see families returning to the beaches of Europe this year," he said. "They went to the beaches of the west of Ireland and Cornwall last year, and I think they never want to go back there again."

O'Leary said industry short-haul capacity would be down 10% this summer, driving fares higher. Ryanair carried some 8.7m passengers in February, up by around 500,000 year-on-year, operating some 53,660 flights with an 86% load factor, despite the residual effects of the Omicron wave.