The cost of air flights will rise, warned Ryanair’s CEO, Michael O’Leary, as Ryanair released its annual results for 2018 with revenue up eight per cent.

Mr O’Leary told Bloomberg: “Currently oil prices are up to close to $80 a barrel.

“Now I think that’s going to lead to a major shake out in the industry as early as this winter.

“Some of those loss-making airlines couldn’t make money when oil was at $40 a barrel, they certainly can’t survive this winter oil at $80 a barrel.

Ryanair Michael O'Leary flight prices airfares oilBloomberg •

Ryanair’s CEO Michael O’Leary warned that fares will rise

There’s no doubt fares will rise but there tends to be a 12 month lag

Michael O’Leary

“So it is the rate and speed of that shake out which will determine future earnings.

“For the moment we are being pessimistic on pricing, we are assuming that nobody disappears this winter which I think is probably unrealistic but there will be above average capacity growth in Europe for the next 12 months.

“There is no doubt fares will rise but there tends to be a 12 month lag between fuel and airfares.

“So I think it is a question of timing.”

Ryanair released its annual results for 2018 today, with revenue up eight percent and earnings per share up 15 percent. It also announced an increase in passengers.

But the budget airline has predicted a tough 2019 due to rising fuel prices, higher staff pay and the fallout from Brexit.

It has warned that profits could plummet by as much as 14 percent in the next financial year.

O’Leary added they were working hard with other EU nations to ensure they could fly in Europe after Brexit.

Source of Travel News

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