Ryanair CEO: "Airfares Will Continue to Rise Over the Next 5 Years"

Michael O'Leary, CEO of Ryanair.

[Asia Economy Reporter Moon Hyewon] Michael O'Leary, CEO of Ryanair, Europe's largest low-cost airline, has predicted that airfares will continue to rise over the next five years.

On the 2nd (local time), according to the British daily The Guardian, CEO O'Leary stated in an interview with the Financial Times (FT) that airfares have become too cheap.

He said, "Every time I go to London Stansted Airport, I realize that the train fare to central London is more expensive than the airfare."

CEO O'Leary forecasted that Ryanair's average fare will rise from the current 40 euros (about 54,000 won) to 50-60 euros (about 68,000 to 81,000 won) in the medium term. Emphasizing the increase in environmental charges, he predicted that next year there will be broad inflationary pressures on the aviation industry, including labor costs and air traffic control fees.

He said, "I expect oil prices to remain structurally high for the next 4 to 5 years until we can move away from Russian oil and natural gas."

He also criticized Brexit (the United Kingdom's withdrawal from the European Union [EU]), saying that recruitment of European staff by airlines has become difficult, worsening the labor shortage this summer, calling it "one of the inevitable consequences of the 'disaster' caused by Brexit."

Since the lifting of COVID-19 lockdowns, travel demand has exploded, and airfares are already soaring. Airlines that laid off staff during the COVID-19 pandemic when demand plummeted are now unable to find workers and are reducing passenger capacity.

Moreover, some airport and airline staff across the US and Europe have gone on strike, causing thousands of flight cancellations last week, and passengers are expected to receive many cancellation notices again this week.

This content was produced with the assistance of AI translation services.