Ryanair CEO Warns Airfares Could Rise in 2027 Amid High Oil Prices
Ryanair CEO Michael O’Leary warned shareholders at the airline’s annual general meeting that airfares could rise significantly next year if oil prices remain high. The comments come as Ryanair's U.S.-listed shares (RYAAY) trade near a one-year low, and fuel costs have surged due to geopolitical tensions between the U.S. and Iran. Ryanair has hedged 80% of its fuel needs through March 2027 at $67 per barrel, better protecting it than most European rivals this winter. However, unhedged fuel prices have more than doubled, prompting Ryanair to cut winter flights and lower its full-year passenger target by two million. O’Leary also noted that less-hedged competitors may struggle or fail if high oil costs persist, potentially allowing Ryanair to gain market share. First-quarter profits fell 34% despite a rise in traffic, with average fares dropping about 6%. Analysts still rate RYAAY as a Strong Buy with an average price target of $68.45.
Tickers: $RYAAY
Topics: airfares fuel costs oil prices Ryanair earnings outlook