The days of American backpackers jetting across Europe for $20 per ticket on Ryanair could be ending soon—according to Ryanair.
When the war in Iran started squeezing airlines with higher fuel prices in March, Ryanair had a buffer: it hedged the majority of its estimated fuel needs at a set price through March 2027, a tool that helped it avoid passing on costs to consumers.
“Our industry leading hedging means we are better insulated from higher oil prices than any EU competitor,” Ryanair said in its annual report released in June.
But now, as oil tops $100 per barrel with escalating military conflict between the U.S. and Iran, Ryanair’s CEO Michael O’Leary warned on Thursday that flight prices could still go up.
“If oil prices remain high into next year, I think there will be a significant uplift in airfares, and we would hope to avoid that,” O’Leary told reporters in comments reported by Reuters. A Ryanair spokesperson declined to comment.
