Ryanair’s CEO warns Europe to brace for the largest increase in airfare ever seen
Ryanair predicts that airfares in Europe will experience their “largest rise ever” next year. CEO Michael O’Leary stated on Tuesday that airlines generally lack protection against the increasing expenses of jet fuel.
O’Leary forecasted that next year there will be a reduction in available seats because of airline bankruptcies and mergers. Which, coupled with staffing shortages, would drive ticket prices up by as much as 20%.
«Next year, I believe airfares in Europe will increase by 10, 15, or possibly 20%.» «You will witness the largest rise in flight prices, I would assert, in European history over the coming year,» O’Leary remarked at a press event in Brussels.
The conflict with Iran has led to a significant increase in jet fuel prices, narrowing margins for airlines that lacked coverage.
O’Leary stated that Ryanair and various European airlines had robust hedging strategies for jet fuel by 2026. Noting that Europe’s biggest airline was 80% hedged at $67 a barrel until March 2027, when the conflict started in late February.
Ryanair’s CEO stated that by April 2027, the majority of European airlines had minimal coverage established. Ryanair has secured only 15% of its fuel expenditures for the upcoming year at $85 a barrel. While current spot rates are approximately twice that amount, he noted.
O’Leary was in Brussels to declare a reduction of 20 routes and over a million seats from Belgium for the airline’s winter timetable. Following Belgium’s intention to hike the aviation tax to 7 euros in January from the existing 2 euros.
The experienced industry professional also conveyed hope regarding the US certification of the Boeing 737 MAX 10, anticipated to finish this month, enabling Ryanair to receive 16 planes by early 2027.
