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Automatically translated version. May contain inaccuracies compared to the original.
Over the next year, airfares in Europe could rise by 20% due to higher oil prices amid the war in the Middle East. That forecast was made by Ryanair CEO Michael O’Leary on 20 October at a press conference in Brussels, Bloomberg quoted him as saying.
He said airlines will be forced to pass increased fuel costs on to passengers.
"In the next 12 months you will see, I would say, the biggest rise in airfares in Europe’s history. The question is whether this price increase will be enough to cover the sharply higher oil costs. I don’t think it will," O’Leary said.
He warned that carriers’ profitability will fall because even raising fuel surcharges will not offset the increased costs.
According to the Ryanair chief, next year 85% of the company’s fuel needs are not covered by hedging — the financial mechanism that protects against price fluctuations. Most other European airlines, he claims, are in a similar position.
Additional pressure on the industry is coming from higher taxes and reduced capacity due to difficulties at some carriers. Ryanair, in particular, plans to reduce its presence in France and Belgium in response to rising taxes.
Bloomberg notes that airlines worldwide have been hit by a sharp rise in jet fuel prices since the start of the war with Iran at the end of February. Ryanair’s July results showed the conflict has already hurt the company’s profits, and concerns about fuel availability have prompted passengers to book tickets closer to departure dates.
Document: PDF proof of the original version of the news item "Ціни на авіаквитки можуть сягнути рекордного для історії Європи рівня". It records the publication content at the moment of the first scan, the preservation date and the source: Gordon.
