Speaking at a press conference on Wednesday, O’Leary said the airline’s fare outlook is “only going one way – significantly upward,” linking the expected increase to oil trading above $100 a barrel, a level not seen since July.
The budget carrier has already trimmed its air‑traffic target for the coming year, a move O’Leary said reflects a strategy to rely less on unhedged fuel during the winter months.
He warned that if Ryanair were to hedge fuel at $100 a barrel next year, its oil bill would swell by roughly 25%, a cost that would inevitably be passed on to passengers.
O’Leary also cautioned that the spike in oil prices, driven in part by the ongoing Iran conflict, could force some competitors to cut capacity or even exit the market this winter.
Ryanair’s statement comes after oil prices briefly breached the $100 mark earlier this month following a new round of strikes linked to the Iran war, underscoring the airline’s exposure to volatile energy markets.