, the company responsible for Cork and Dublin airports, this week cautioned in a submission to regulators on passenger charges that the pent-up demand of recent months could plateau next year.
Furlong has noticed that regulated airports, including London Heathrow, tend to warn that post-Covid air travel buoyancy may not continue. However, that caution is mostly evident in submissions to regulators, in which they are going to make the strongest cases possible for increases in their passenger charges.
Furlong agrees in part with this analysis of how recessions hit airlines. “People trade down from higher cost, expensive trips to a cheaper trip and some people trade down so that they do not travel,” he says. He also notes that air travel and economic growth are linked.Fuel is a more immediate issue. Surging oil prices, most lately a consequence of Russia’s invasion of Ukraine, mean higher kerosene costs.
O’Leary was quick to point out on Monday that Ryanair’s cover takes it into next March, when its financial year ends, while most of its rivals are only hedged to the end of December. Even at that, he predicted that high oil prices could lead to cost increases over coming months for which his company has not budgeted.
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