LONDON, Sept 2 (Bernama-PA Media/dpa) -- Ryanair has warned that it believes some competitors will “struggle to maintain capacity or even survive” this winter if oil prices remain high, reported PA Media/dpa.
The Irish airline also expects airfares on short-haul flights to increase “materially” if high oil prices continue into 2027.
It also cut its air traffic target for next year amid efforts to use less unhedged fuel over the winter period.
It comes after a fresh uptick in oil prices linked to a recent intensification in the conflict in West Asia.
The average price of jet fuel has risen 8.2 per cent month-on-month to around US$156 per barrel, and is 74.2 per cent higher over the past year, according to the International Air Transport Association (IATA).
Ryanair stressed that around 80 per cent of jet fuel for 2027 is hedged at US$67 per barrel, making it well-placed to record another profitable year.
However, it said the high cost of unhedged fuel means that it is “sensible” to reduce its exposure during the unprofitable winter schedule between November and March.
As a result, Ryanair has reduced its 2027 air traffic target from 216 million to 214 million passengers to limit its use of expensive unhedged oil.
Air traffic over the winter period will be “broadly flat” compared with the previous year as a result.
The company said: “If high oil prices continue through to 2027, Ryanair believes short-haul airfares in Europe will increase materially to reflect higher oil prices, as some less well-hedged competitors will struggle to maintain capacity or even survive this coming winter season.”
Ryanair added that it is still on track to grow its summer traffic, representing the period between April and October this year, by more than 5 per cent to 145 million.
Elsewhere, rival Wizz Air reported that its passenger numbers grew by 25.9 per cent last month compared with a year earlier, driven by a jump in flight capacity.
-- BERNAMA-PA MEDIA/dpa
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
