Ryanair Warns of Airfare Price Hikes if Oil Remains Elevated

Ryanair’s CEO warned that airfares may face significant increases if oil prices persist at elevated levels, citing rising jet fuel costs as a key driver. Michael O’Leary stated that while pricing adjustments are expected to remain modest through the second quarter of 2026, the airline anticipates major upward revisions in the December 2026 and March 2027 periods. ‘If oil prices remain high into next year, I think there will be a significant uplift in airfares,’ O’Leary told reporters ahead of the company’s annual general meeting, according to Reuters. The airline has hedged 80% of its jet fuel needs for the summer period at a rate of $67 per barrel, but hedging coverage drops to just 15% for 2028 at $85 per barrel, leaving it vulnerable to further price spikes. Brent crude futures were trading above $100 per barrel on Thursday, driven by escalating geopolitical tensions in the Middle East, which have contributed to supply concerns. Jet fuel prices surged to $171 per barrel for the week ending September 4, up 90% year-over-year, according to the International Air Travel Association’s Jet Fuel Price Monitor. The airline’s first-quarter profit was hit by a 34% decline due to delayed bookings following the U.S.-Iran conflict, prompting Ryanair to lower ticket prices amid consumer anxiety. O’Leary had previously stated that the airline would avoid fuel surcharges or hedging adjustments regardless of summer supply disruptions, but the current oil market volatility now raises fresh concerns about pricing flexibility.