Airlines can't keep fares low due to oil prices
Ryanair CEO Michael O'Leary warned that rising oil prices will likely force a 15% to 20% increase in airfares for summer 2027. He also expressed concerns regarding geopolitical instability and potential delays in Boeing aircraft certifications.
Why it matters
Rising travel costs impact global consumer spending and the broader economic recovery of the aviation industry.
Ryanair's O'Leary says airlines cannot keep fares low with current oil prices.
Ryanair CEO Michael O'Leary said today that demand for air travel remained very strong because airlines had kept fares low, but warned that this could not continue with oil prices at current levels.
O'Leary said that jet fuel costs would push summer 2027 fares up by 15% to 20%.
"We're optimistic for the future, but there's lots of short-term challenges, most notably what will happen with Trump and the Republicans in the midterm elections in November," he told Reuters in an interview.
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