Ryanair CEO Warns of Significant Airfare Hikes as Jet Fuel Costs Surge
· Business · CNBC
Ryanair CEO Michael O'Leary warned that airfares could see a significant increase next year if oil prices remain elevated. Jet fuel costs have soared amid escalating tensions in the Middle East, with Brent crude staying above $100 a barrel and West Texas Intermediate futures rising 1.4% to $97.40 per barrel. Jet fuel reached $171 per barrel for the week ending September 4, marking a 90% increase from the prior year's average according to the International Air Transport Association. O'Leary stated that pricing for the July-to-September quarter is expected to be modestly down, but the outlook for December and March remains uncertain. The budget airline previously reported a 34% hit to first-quarter profits following consumer booking delays after the start of the U.S.-Iran war on February 28.
Why it matters
Rising jet fuel costs and potential airfare hikes threaten to increase travel expenses for passengers worldwide, while squeezing profit margins for budget carriers across the aviation industry.
Read the original report — CNBC
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