Michael O'Leary, CEO of Ryanair Group, addressed the status of jet fuel prices at a press conference of the Airlines for Europe (A4E) association and warned of the continuation of high costs until 2028. He emphasized that European airlines will face serious challenges regarding fuel costs due to the U.S. and Israeli regime's war against Iran.
Significant Increase in Jet Fuel Prices
O'Leary stated that jet fuel prices are currently about 50% higher than pre-war prices against Iran. This situation has severely impacted the profit margins of airlines and, despite extensive efforts to hedge fuel price risks, has put significant pressure on the industry. He predicted that jet fuel prices will remain at this level for the next 12 to 18 months.
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Challenges Ahead for Airlines
The CEO of Ryanair stated: "We are all facing a major cost challenge next year." These remarks come as analysts have warned that Europe may face a jet fuel supply shortage by the fourth quarter of this year. This supply shortage could lead to further price increases and reduced access to fuel for airlines.
Currently, geopolitical crises and fluctuations in global oil prices have added to the existing challenges in the aviation industry. The CEO of Ryanair highlighted the negative impacts of this war and market volatility on the planning and strategies of airlines. He emphasized that companies must seek new solutions for cost management to survive in these difficult conditions.
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