During a press briefing ahead of Ryanair's annual general meeting, CEO Michael O'Leary expressed concerns about the potential for airfare increases due to elevated oil prices, which have recently surpassed $100 a barrel amid geopolitical tensions.
He noted that while Ryanair anticipates a modest decline in ticket prices for the second quarter, the outlook for the December and March quarters remains uncertain. The cost of jet fuel has surged to $171 per barrel, a 90% increase from the previous year's average, which is straining airline profitability.
O'Leary previously warned of potential failures among weaker European airlines as they struggle with these rising costs. Ryanair has hedged a significant portion of its fuel needs, with 80% hedged for the summer at $67 per barrel for 2027, but only 15% for 2028 at $85 per barrel.
The airline's first-quarter profits were impacted by a 34% drop due to delayed consumer bookings linked to the U.S.-Iran conflict, prompting a temporary reduction in ticket prices. O'Leary assured that there would be no immediate price increases or surcharges despite the volatile fuel market