Ryanair CEO Warns of Potential Airfare Increases Due to High Oil Prices
Ryanair CEO Michael O'Leary warned that airfares could rise significantly if oil prices remain high into next year, citing uncertainty about the airline's second-half pricing outlook. Speaking at Ryanair’s annual general meeting, he noted that while pricing is expected to be modestly lower in Q2 (July–September), the December and March quarters are still uncertain due to ongoing Middle East tensions affecting energy markets. Jet fuel prices have surged 90% year-on-year, reaching $171 a barrel as of September 4. Ryanair has hedged its 2027 fuel at $67 per barrel and secured part of its 2028 needs at $85 per barrel after capitalizing on a temporary dip in oil prices during the recent ceasefire. Ryanair’s first-quarter profit dropped by 34% to €538 million due to rising unhedged fuel costs and reduced bookings following the U.S.-Iran conflict. Passenger fares fell 6%, while total revenue rose just 1%. The airline has not issued a full-year forecast, citing limited visibility into second-half demand.
Tickers: $RYAAY
Topics: airline industry fuel prices oil market pricing strategy