Ryanair CEO warns of significant airfare increases due to high oil prices

Ryanair CEO Michael O'Leary has warned of “significant” increases in airfares if oil prices remain elevated. While a slight downward trend in pricing is expected for the second quarter (July to September), the outlook for the December and March quarters remains uncertain.

Rising crude oil prices, with Brent crude exceeding $100 per barrel, have driven up jet fuel costs. According to IATA, jet fuel prices reached $171 per barrel for the week ending September 4, representing a 90% increase compared to the previous year's average.

Ryanair has hedged 80% of its fuel needs for the summer period, but its protection levels decrease for future years. The company has covered 67% of its needs for 2027 at $63 per barrel, while only 15% of its 2028 requirements are covered at $85 per barrel.