Ryanair CEO Predicts 20% Rise in European Airfares Due to Surging Fuel Costs
Ryanair CEO Michael O'Leary has warned that European airfares could increase by as much as 20% by 2027. This projected spike is driven by a significant 'cost cliff' resulting from rising jet fuel prices and the expiration of existing fuel hedges, particularly amid ongoing geopolitical instability in the Middle East. The airline reported a 15% decline in profit to €2.15 billion for the first fiscal half of the year, attributed largely to the doubling of costs for its unhedged fuel supply. To mitigate an estimated €2 billion increase in upcoming fuel charges, Ryanair is initiating a comprehensive cost review involving potential pay freezes, reduced crew rations, and increased integration of AI technology.
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Topics: airfares airline industry cost management earnings report jet fuel prices