Ryanair CEO Warns Airfares Could Rise Sharply If Oil Stays High

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Ryanair chief executive Michael O'Leary warned at the airline's annual general meeting in Dublin that airfares could rise sharply next year if oil prices stay high. O'Leary said fares should be modestly lower in the July-to-September quarter, but the December and March quarters remain unpredictable, and that a significant uplift in airfares may follow if oil prices remain elevated into next year, though Ryanair has guaranteed no extra fuel charges. Ryanair is Europe's largest low-cost airline, and fuel is one of its biggest expenses; Brent crude has now gone above $100 a barrel due to the U.S. and Iran conflict, and jet fuel has climbed to about $140 a barrel. The airline has secured 80% of its fuel needs up until the end of March 2027 at about $67 a barrel, plus an additional 15% at $85 a barrel for the 2028 fiscal year, and O'Leary said it is better hedged than almost any other airline in Europe. Ryanair cut its full-year passenger target to 214 million from 216 million and expects winter flying reductions to lower winter losses by €70 million to €100 million, after first-quarter profit after tax fell 34% to €538 million even as traffic rose 6% and average fares dropped about 6%.

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Ryanair Holdings plc
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High oil/jet fuel prices threaten Ryanair's fuel costs, prompting a warning that airfares may rise sharply and it cut its full-year passenger target.

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