“I don’t think there will be ten euro notes anymore because oil prices are much higher,” Mr O’Leary told the BBC, adding that “we’re not going to have these tariffs for a number of years.
Average ticket fares on Ryanair are expected to increase by around 10 euros, to around 50 euros per journey in the next 5 years, he detailed. Which, given the fare structure of low-cost with many supplements, especially for luggage, could quickly increase the total cost of a round trip to several hundred pounds and undermine demand.
At the end of July, the director general of the International Air Transport Association (IATA), Willie Walsh, indicated that the rise in oil prices will inevitably be passed on to consumers.
“Flights will be more expensive for consumers, no doubt,” argued the former British Airways boss, explaining that the “high price of oil” will be reflected “in higher ticket prices”.
The surge in oil prices over the past year (+36% for Brent listed in London) weighs particularly heavily on the costs of so-called “low cost” companies compared to traditional carriers.