Airlines Can't Keep Fares Low Due to Oil Prices - O'Leary
Michael O'Leary said Ryanair is hedged at about $80 a barrel this year, but warned fares will rise if oil stays above $100.
- On Tuesday, Ryanair CEO Michael O'Leary warned that airfares will rise "materially" into Summer 2027 as surging oil prices end the airline's ability to maintain low fares for passengers.
- Global oil prices have climbed above $100 a barrel for the first time since July, driven by the ongoing USA-Iran conflict forcing airlines to confront significantly higher fuel expenses.
- Ryanair currently spends $80 per barrel for fuel but faces 25% spending increases if prices reach $100, with the company's annual oil bill totaling $6 billion despite 80 percent hedging at $67.
- In response to economic pressures, the airline reduced its passenger forecast to 214 million and initiated scheduling modifications, aiming to reduce winter operational losses by €100 million in Dublin.
- Ryanair still expects to receive its first 15 Boeing MAX-10 jets in Summer 2027 and add two million low-fare seats if the Irish Aviation Authority confirms proposed airport charge cuts.
17 Articles
17 Articles
Ryanair Chief Executive Michael O'Leary said demand for air travel remained very strong as airlines kept ticket prices low, but warned that this could not continue at current oil levels, Reuters reported, BTA reported. O'Leary also commented that in the event of a delay in the certification of the Boeing Max 10 aircraft, the company hoped it would be "a matter of days, not weeks or months." "We still expect to receive the first 15 MAX 10 aircraf…
News quickly and reliably.
Michael O'Leary warns airline fares are 'only going one way'
Michael O’Leary has said that airline fares are ‘only going one way’ in a grim forecast for how much we might pay to travel. Prices of oil are continuing to surge as a result of the ongoing USA-Iran war, which has seen prices of diesel soar past the €2 per litre mark — reaching €2.10 […]
Coverage Details
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
