GoKawiilPassengers wait to board an aircraft of low cost Irish airline Ryanair at the Berlin-Brandenburg airport in Schoenefeld near Berlin, Germany, on March 13, 2024.
Ryanair's CEO warned Thursday that airfare prices may see "significant" hikes if oil prices remain elevated as the surging cost of jet fuel continues to squeeze the airline industry.
"We expect pricing to be very modestly down in the second quarter (from July to September), but the December and March quarters are entirely up in the air," Michael O'Leary told reporters ahead of the company's annual general meeting, according to comments reported by Reuters.
"If oil prices remain high into next year, I think there will be a significant uplift in airfares, and we would hope to avoid that," O'Leary added.
CNBC has contacted Ryanair for comment on the statements.
Oil prices edged higher Thursday as worries over escalating tensions in the Middle East and their impact on energy supplies kept Brent crude above $100 a barrel. U.S. West Texas Intermediate crude futures were up 1.4% to $97.4 per barrel.
The jump in oil prices has sent the cost of jet fuel — a crucial energy source for airlines — soaring. It was last at $171 per barrel for the week ending Sept. 4, up 90% from the prior year's average, according to the International Air Travel Association's Jet Fuel Price Monitor.
In April, O'Leary told CNBC that there would be some "failures" in weaker European airlines later in the year as the cost of jet fuel becomes harder to absorb.