Ryanair warns that jet fuel prices could soar to $140 per barrel this winter and proactively reduces winter capacity

(1) Europe's major airline Ryanair announced on Wednesday that it will reduce winter capacity to control risk and respond to a scenario where aviation fuel could reach as high as $140 per barrel. Ryanair is an airline with relatively extensive fuel hedging, having locked in approximately 80% of its fuel needs. (2) Even with a high hedging ratio, the company is still choosing to cut capacity under high oil price pressures, and it is expected that this move can save 70 million to 100 million euros (equivalent to $81 million to $115 million) in costs. (3) The company warns that if aviation fuel prices remain elevated, the operations and survival of some airlines will be pressured, and ticket prices for short-haul European flights may notably rise next year. (4) Carlyle Group Senior Advisor Jeff Currie previously reminded the market to focus on the refined oil sector. He stated that crude oil is not an end-use consumer product; the market actually uses gasoline, diesel, and jet fuel, and the fundamentals of refined oil are much tighter than those of crude oil.