Ryanair warned that, in the event that high oil prices continue until 2027, some of its competitors will have difficulties maintaining operational capacity or may even survive this winter.
The Irish company has reduced its air traffic estimates for 2027 from 216 million to 214 million passengers, in order to limit the use of unhedged expensive oil. The average price of jet fuel has increased by 8.2% compared to the previous month, reaching approximately 156 dollars per barrel, and is 74.2% higher compared to last year. Ryanair emphasized that 80% of the fuel for 2027 is hedged at 67 dollars per barrel, which allows it to have a profitable year.
However, high costs of unhedged fuel require reducing exposure during the winter period, when air traffic will be stable compared to last year. Ryanair expects that fares for short-haul flights in Europe will increase significantly. In contrast, Wizz reported a 25.9% increase in passenger numbers last month, despite industry challenges. Wizz CEO Jozsef Varadi mentioned the volatility in the industry due to conflicts in the Middle East and high fuel prices.
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