The CEO for Ryanair expects European plane ticket prices may climb as much as 20% next year with the conflict in the Middle East ongoing.
“So we’re facing 2027 where we have much higher oil prices... I think they’re going to get passed on in significantly higher airfares,” CEO Michael O’Leary said in a Monday interview on CNBC.
The price of jet fuel has been extremely volatile after the U.S. and Israel launched attacks on Iran.
Jet fuel has risen even faster than oil during the war, reflecting both higher crude prices and tight supplies of the refined fuel that is one of the largest operating expenses for airlines. Carriers have cut some less profitable flights and raised fares and baggage fees, although major U.S. airlines said higher passenger revenue initially covered only part of their soaring fuel costs.
Globally, jet fuel averaged about $99 a barrel on Feb. 27, the day before the war began, according to the International Air Transport Association’s Jet Fuel Price Monitor. Prices more than doubled to $209 by early April, fell for nearly three months and reached $195 a barrel in mid-September following their renewed ascent, IATA said, citing data from S&P Global Energy Platts. The global average jet fuel price is currently hovering around $196 a barrel.
Since diesel and jet fuel are closely related products that compete for space at refineries, shortages of one can put additional pressure on the price and availability of the other.
The IATA expects fuel to account for nearly one-third of airline operating expenses this year, up from about a quarter in 2025.
Ryanair said Monday that it doesn't expect European short haul airfares to fully offset anticipated increases in its fuel bill for next year, so it is reviewing its costs and may have to impose temporary pay freezes, lower crew ratios and use more artificial intelligence to get further productivity for back office and support functions.
FILE - A Ryanair Boeing 737 MAX takes off from Lisbon airport, Wednesday, Jan. 25, 2023. (AP Photo/Armando Franca, File)
NEW YORK (AP) — The U.S. stock market is clawing back some of its sell-off from last week. The S&P 500 rose 0.5% early Monday, coming off its third straight losing week. The Dow Jones Industrial Average added 363 points, or 0.7%, and the Nasdaq composite climbed 0.7%. Stocks got a lift from easing prices for oil. Brent crude fell 5.8% to below $107 per barrel in its latest yo-yo move on uncertainty around the war with Iran. AI-related stocks, meanwhile, held firmer following their sharp drops last week on worries their prices may have shot too high.
THIS IS A BREAKING NEWS UPDATE. Check back for updates. AP’s earlier story follows below.
U.S. futures are rebounding from a major market sell-off Friday with a boost from sharply declining oil prices on hopes for progress in diplomatic efforts between the U.S. and Iran.
Futures for the S&P 500 advanced 0.5% Monday, while those for the Dow Jones Industrial Average rose 0.6%. Nasdaq futures rose 0.8%.
U.S. stocks fell Friday in their worst day since June as investors dumped artificial intelligence and tech stocks. There is growing concern that the massive investments in AI will not pay off, at least not fast enough.
Apple will report its latest earnings results after the bell Monday along with Palantir Technologies. Advanced Micro Devices will report its quarterly results on Tuesday.
Last week, earnings reports from Google parent Alphabet Inc. and Amazon rattled markets and raised fresh questions over whether their massive AI-related spending.
Shares of both Marvell and Lumentum are falling after the announcement of an all-stock deal for Lumentum worth about $115 billion, including debt. Marvell, despite the aggressive pullback in AI stocks last week, believes the investment is still warranted.
Markets appear less certain. Marvell slid more than 1% before the opening bell and Lumentum fell almost 3%.
Oil prices dropped Monday, with Brent crude, the international standard, down 4.2% to $108.68 per barrel. Still, that’s much higher than the roughly $65 that a barrel of crude was selling for at this time last year.
Benchmark U.S. crude fell 4.2%, to $99.74 a barrel, compared with $61 per barrel at this time last February.
Iran’s top diplomat said in an interview shared on his Telegram channel over the weekend that Iranian negotiators were in Qatar for talks on a proposal that could reopen the Strait of Hormuz within two days if the U.S. meets several conditions. However, he said no direct talks were being held with the U.S.
The final outcome of the diplomatic efforts to avoid a return to all-out war depends on answers provided by the United States to the “Iranian questions,” he said.
Wall Street is also waiting for the outcome of Tuesday’s U.S. midterm elections. Voters across the political spectrum have shown increasing concerns about AI and data centers, along with inflation and other key issues.
There is critical U.S. economic data arriving Friday when the government issues its October jobs report. In September, U.S. employers added a disappointing 29,000 jobs and the unemployment rate ticked up to a still-low 4.2%.
In equities trading, shares of both Marvell and Lumentum are falling after an all-stock deal for Lumentum worth about $115 billion, including debt. Marvell, despite an aggressive pullback in AI stocks last week, believes the investment environment is still active.
Markets appear less certain. Marvell slid more than 1% before the opening bell and Lumentum fell almost 3%.
In Europe, Britain's FTSE 100 gained 0.1% to 10,736.14 on Monday. Germany's DAX climbed 0.1% to 25,847.97, while the CAC 40 in Paris added 0.2% to 7,988.21. Asian markets were mostly higher.
The U.S. dollar rose to 157.91 Japanese yen from 157.49 yen. The euro was trading at $1.1211, up from $1.1160.
FILE - Trader Joseph Stevens, left, works on the floor of the New York Stock Exchange, on May 5, 2026. (AP Photo/Richard Drew)
FILE - Trader Michael Capolino, left, and Specialist Thomas McArdle work on the floor of the New York Stock Exchange, Monday, Jan. 26, 2026. (AP Photo/Richard Drew, file)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm, Monday, Nov. 2, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm, Monday, Nov. 2, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm, Monday, Nov. 2, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei and New York Dow indexes at a securities firm, Monday, Nov. 2, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm, Monday, Nov. 2, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
