Ryanair, Europe's largest low-fare airline, has lowered its winter traffic target to 214 million passengers from 216 million, citing high unhedged jet fuel prices and warning that less well-hedged competitors may struggle to survive the winter. The airline, which has about 80% of its fuel costs hedged at $67 per barrel, faces exposure on the remaining 20% as jet fuel trades near $140 per barrel. Ryanair said it is strategically reducing exposure during the unprofitable winter schedule from November to March, and expects short-haul airfares in Europe to rise materially if oil prices stay high. The warning comes amid a global fuel price spike following Middle East hostilities, with Lufthansa Group expecting an additional $2 billion in fuel costs this year and Air France-KLM projecting a $2.4 billion increase.
Ryanair Holdings plcRyanair cuts winter traffic target due to high unhedged jet fuel costs.
Air France-KLM SAAir France-KLM projects a $2.4 billion increase in fuel costs.
Deutsche Lufthansa AGLufthansa expects an additional $2 billion in fuel costs this year due to high jet fuel prices.
