Ryanair boss predicts steep rise in European air fares next year
European air fares could rise by 10%, 15%, maybe 20% next year, Ryanair chief executive Michael O'Leary said at a news conference in Brussels. He described the expected change as the biggest increase in air fares in history in Europe for the next 12 months, and linked higher airline fuel bills to the Middle East conflict. The Guardian
O'Leary said Ryanair was 80% hedged at $67 a barrel when the Iran conflict began in late February. Hedging in this context means locking in part of future fuel at a set price in advance. For next year, he said the airline is 85% unhedged, with hedging covering 15% of fuel at $85 a barrel.
He predicted airline bankruptcies and takeovers because many carriers are not protected against rising jet fuel costs. Ryanair had earlier said it hedged 80% of its jet fuel needs to April 2027 at about $67 a barrel.
O'Leary has said jet fuel costs were about 50% above pre-war levels and would likely stay elevated for 12 to 18 months, remaining high into 2028. He has also said there could be a significant rise in airfares if oil prices remain high into 2027. Reuters
Ryanair itself has said it will not add a fuel surcharge, a separate fee to pass fuel costs to passengers, though O'Leary said other airlines may add surcharges or raise fares. The airline recently cut its passenger forecast to 214 million from 216 million. Reuters
That outlook follows a difficult summer for the carrier. Ryanair reported first-quarter profit after tax fell 34% to €538 million as unhedged oil prices spiked, while traffic grew 6% at lower fares. Fares in the quarter fell 6%, and the company said its final full-year unit costs will depend on the price of its 20% unhedged fuel over the remaining three quarters. Ryanair
For its 2025-26 financial year, Ryanair reported profit after tax rose 40% to €2.26 billion, with traffic up 4% to 208 million passengers despite Boeing delivery delays. It said it expects to receive its first 15 Boeing MAX-10 aircraft in spring 2027.
