AssetID: 56125124
Headline: UNCAPTIONED: Ryanair Warns of Higher Airfares as Middle East Conflict Hits Airline Profits
Caption: Ryanair Warns of Higher Airfares as Middle East Conflict Hits Airline Profits. Ryanair has warned that rising jet-fuel prices could add around €2 billion to its fuel bill in the financial year ending March 2028, unless the conflict in the Middle East is brought to a swift end. Chief executive Michael O’Leary expects fuel prices to remain elevated well into 2027, putting further pressure on airlines already struggling with the impact of the conflict. The Irish low-cost carrier believes higher ticket prices and reduced capacity among competitors will help offset some of the costs, but will not be enough to compensate for the full increase. Ryanair is reviewing its spending across the business, including negotiating lower airport charges, potentially introducing staff pay freezes and reducing crew numbers on flights. The airline has secured 80% of its fuel requirements through March 2027 at an average price of $67 a barrel, but has hedged only 25% of its needs for the following 12 months at $95 a barrel. The warning came as Ryanair reported a 6% fall in second-quarter net profit to €1.61 billion, despite a 4% increase in revenue to €5.7 billion. Passenger numbers rose by 5% to 64.5 million during the quarter, although average fares fell by 2% compared with the same period last year. Ryanair expects European short-haul fares to rise significantly as airlines pass on higher fuel costs, while weaker competitors could be forced to cut capacity or struggle to remain profitable. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Michael O'Leary,European,business,short-haul,fares,cuts,prices,jet fuel,increase,costs,compensation,competitors,airports,lower,taxes,profitable,warnings,campaign,regulation,Iran,Middle East,war,oil,barrels
PersonInImage: