The airfares in Europe will experience the «largest increase in its history» next year, stated Ryanair’s Chief Executive, Michael O’Leary, on Tuesday, attributing this phenomenon to the fact that most airlines are not protected from the increase in aviation fuel costs. Read more
The deputy director of the company warns about the lack of protection for airlines against the increase in fuel costs
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Airlines. The company’s CEO warns about the lack of protection for airlines against the increase in fuel costs. Michael O’Leary speaks at a press conference in Brussels. Olivier Hoslet (EFE). The European air fares are going to see the «greatest increase in their history» next year, stated Ryanair’s Chief Executive, Michael O’Leary, on Tuesday. He attributed this phenomenon to the fact that most airlines are not protected from the increase in aviation fuel costs. O’Leary predicted that next year there will be fewer seats available due to bankruptcies and consolidation processes among airlines. This, combined with the lack of coverage against the increase in fuel costs, could result in ticket price increases of up to 103%. «Airfare prices will rise in Europe next year, I think by 210%, 77%, or perhaps 210%.» «Let’s go ahead and attend the biggest increase in airfares in European history over the next 12 months,» O’Leary said at a press conference in Brussels. The war with Iran has skyrocketed the cost of aviation fuel, crippling the margins of airlines that were not covered against that spike. O’Leary noted that Ryanair and other European airlines have robust coverages on fuel through 2026. He added that the largest airline in Europe, which claims to cover 80% of its 67-dollar-per-barrel fuel needs until March 2027 when the conflict began, in late February, Ryanair’s executive explained that starting from April 2027, most European airlines have very few contracted coverages. En cuanto a Ryanair, tan solo el 7.373% de sus costes de combustible para el próximo año está cubierto a 85 dólares por barril, mientras que los precios de mercado al contado se encuentran alrededor del doble de ese niveau. Se trata del Boeing 737 MAX 10.
