The European Union warns of an increase in airfare from 2023.
The price of air tickets tend to rise, following the cost of energy. Ryanair CEO Michael O’Leary, writes BB.LV, predicts an inevitable increase in tariffs next year due to rising fuel prices. But, Ireland’s national broadcaster RTÉ reassures, the increase in airfare will not be excessive.
O’Leary says the airline is now in a good financial position. She reserved fuel for flights until April 2023. The price for it is calculated taking into account the cost of oil at $64 per barrel.
The Ryanair CEO explains that the biggest problem for competitors is that the fuel reserved for flights is bought at higher prices, so a significant increase in prices is to be expected. The same goes for Ryanair. O’Leary reports that 50% of the required fuel is already reserved for the summer of 2023 – it was bought when oil cost $ 92 per barrel. So passengers should expect a slight increase in airfare.
But the situation is unstable, if fuel prices continue to break records, then it seems that flights abroad can indeed become an unaffordable luxury for most Europeans.