Ryanair CEO Warns of Potential Airfare Hike Amid Soaring Oil Prices
Ryanair's CEO, Michael O'Leary, warned that airfare prices may rise significantly if oil prices remain high. The airline industry is facing a squeeze due to the surging cost of jet fuel, which has jumped 90% from last year's average.
The current price of jet fuel stands at $171 per barrel for the week ending Sept. 4, with U.S. West Texas Intermediate crude futures up 1.4% to $97.4 per barrel. Brent crude is above $100 a barrel due to concerns over escalating tensions in the Middle East.
O'Leary said that if oil prices remain high into next year, there will be a 'significant uplift' in airfares. He noted that Ryanair has hedged 80% of its jet fuel for the summer period at $67 per barrel, but only 15% of its needs are hedged at $85 per barrel for 2028.