Ryanair chief executive officer Michael O'Leary expects the price of oil to dip below $100 a barrel by the end of next year after reaching a “short- term” high of $150 a barrel.
Crude oil prices may decline to the lower figure in 12 to 18 months, Mr O'Leary said today at a press conference in Frankfurt.
The Dublin-based airline, Europe's biggest low-cost carrier, has struggled in recent months as record oil profits eat into earnings.
Ryanair is largely un-hedged for fuel-price increases in the current fiscal year through March 2009. Oil is trading at about $133 a barrel, almost double the price last year.
Mr O'Leary declined to buy hedging agreements for fuel in February, when oil was at about $90 a barrel, saying he expected the price to fall below $80.
The carrier said last month that it won't hedge until prices fall to below $100.
Bloomberg