A new warning regarding airline ticket prices for the summer season in Europe has been issued. Michael O’Leary, CEO of the low-cost airline Ryanair, predicted that airline tickets in Europe could increase by 10 to 20 percent next summer.
According to reports in the British media, O’Leary stated that airlines are struggling to cover high oil prices and indicated that cost pressures could be reflected in ticket prices.
O’Leary estimated that jet fuel could remain 40 percent more expensive than crude oil due to insufficient refinery capacity. It is assessed that rising fuel costs are increasing pressure, particularly on low-cost airlines.
The Ryanair CEO also argued that some airlines could “go bankrupt” this winter. Calling on those planning holidays to book early, O’Leary said, “If I were planning a holiday, I would book my airline tickets today because there is only one way for airline tickets to go next summer, and that is dramatically upwards.”
Following the war in the Middle East, disruptions in supply at the Strait of Hormuz, which is of strategic importance for the global trade of oil and petroleum products, have led to a sharp rise in oil prices. Energy prices, which remain high due to geopolitical risks, continue to exert upward pressure on ticket prices in the aviation sector.
News Source: 12punto
