Ryanair CEO Warns of Airfare Surge Amid High Oil Prices

Ryanair's chief executive warned that airfares could increase significantly if oil prices remain high into next year, introducing uncertainty into the airline's pricing outlook for the latter half of its fiscal year. Michael O'Leary stated that while the airline anticipates modestly lower fares in its second quarter, covering July through September, the outlook for the December and March quarters is uncertain. Brent crude oil prices were trading above $100 a barrel on Thursday, influenced by ongoing tensions in the Middle East. This elevated price environment for fuel is a key concern for airlines. O'Leary indicated that if oil prices persist at these high levels, a substantial rise in airfares could occur, a development Ryanair hopes to avoid. He clarified that Ryanair will not impose direct fuel surcharges, distinguishing its strategy from competitors who may do so. However, he acknowledged that Ryanair's own fares might increase indirectly if rivals implement surcharges, leading to a general upward trend. Ryanair's first-quarter profit saw a 34% decrease, falling to €538 million.