Ryanair CEO warns oil above $100 could end cheap European flights

Ryanair CEO Michael O’Leary warned Thursday that European flight prices could rise significantly if oil prices remain above $100 per barrel into next year, potentially ending the era of ultra-cheap tickets. The warning comes as escalating U.S.-Iran conflict drives up fuel costs. Ryanair’s fuel hedging, which locked in 80% of jet fuel at $67 per barrel through March, softened the initial impact of the Iran war, but the airline still cut its winter flight schedule last week. Jet fuel now averages $180 per barrel in Europe, leaving unhedged fuel exposed to market prices. The broader industry faces similar pressure, with Lufthansa cutting 20,000 flights and United reducing planned flights by 5%. Spirit Airlines shuttered in May after fuel costs spiked from $2.20 to $4.12 per gallon, highlighting the crisis’s severity.