Ryanair CEO Sees 'Significant' Rise in Airfares
The airline chief said winter fares could edge higher as jet fuel costs rise and Ryanair’s outlook depends heavily on oil prices.
- On Thursday, Ryanair group Chief Executive Michael O'Leary warned airfares may see a "significant" rise if oil prices remain high into next year, though he added the airline would "hope to avoid that."
- Oil prices edged higher this week as worries over Middle East tensions kept Brent crude above $100 a barrel, while U.S. West Texas Intermediate futures rose 1.4% to $97.4 per barrel.
- Ryanair has hedged 80% of its fuel needs through March 2027 at about $67 a barrel, and the company reduced its fiscal 2027 traffic target to 214 million passengers earlier this month.
- Fares have risen by a "very low-single digit" amount year-on-year, and O'Leary said he is "reasonably hopeful" that pricing will remain flat-ish or slightly positive for the second half of the year.
- The airline's outlook for the coming months remains "entirely up in the air" as pricing depends heavily on oil price fluctuations over the next five or six months, O'Leary said.
12 Articles
12 Articles
According to CNBC, on Thursday, the Director-General of Ryanair warned that air ticket prices could increase "significantly if oil prices remain high, under conditions where the rising cost of fuel for aircraft continues to put pressure on the airline industry."We expect prices to be very low in [...]
Ryanair CEO sees 'significant' rise in airfares
Ryanair group chief executive Michael O'Leary has today warned of a significant rise in airfares if oil prices remained high into next year but said the outlook for ticket prices for the coming months was "entirely up in the air".
The prices of air tickets could rise again this winter, after the charges already recorded in July, under the conditions under which the price of oil remains at high levels. Chief Ryanair, Michael O-Leary, warns that tariffs could rise significantly in 2027.
Ryanair CEO Michael O'Leary said the company had been forward-thinking and was buying oil at a lower level than it is now, but this will only prevent a significant price increase in the short term.
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
