Ryanair CEO warns of significant fare hikes due to rising oil prices

Ryanair CEO Michael O’Leary has announced that the airline will cut its winter schedule and lower passenger growth targets for 2027. This decision follows a surge in oil prices, with Brent crude recently exceeding $102 per barrel, driven by the ongoing conflict involving Iran. The airline aims to reduce losses by 70 to 100 million euros, as rising fuel costs continue to place significant pressure on the European aviation sector.

O’Leary noted that while pricing for the second quarter (July to September) remains slightly downward, the outlook for the December and March quarters remains highly uncertain. He warned that if oil prices remain at current levels into the next year, passengers should expect a significant increase in short-haul flight fares. The airline executive also suggested that competitors like Air Baltic and Wizz Air could face similar challenges, while noting that EasyJet is currently under scrutiny amid market shifts.

This trend marks a potential end to the era of extremely low-cost travel in Europe, as carriers struggle to absorb the fuel price shock. The situation continues to be monitored as airlines evaluate further route adjustments to maintain profitability amidst the global energy volatility.