From the Guardian · · 1m 20s
Ryanair warns of 20% fare rise in 2027
Michael O'Leary predicts record European air fare increases as airlines face unhedged fuel costs from Middle East conflict.
In brief
Michael O'Leary predicts record European air fare increases as airlines face unhedged fuel costs from Middle East conflict. Ryanair's chief executive predicts European air fares could rise by up to twenty percent in twenty twenty-seven as airlines struggle with fuel costs driven by Middle East conflict and lack…
O'Leary predicts record fare rises
Ryanair's chief executive Michael O'Leary told a news conference in Brussels that European air fares could rise by ten, fifteen, maybe twenty percent next year.
“You're going to see air fares rise next year in Europe, I think by 10, 15, maybe 20%.”
Fuel costs soar from Middle East war
Jet fuel prices have soared as the war on Iran has choked off fuel supplies.
Most airlines lack protection for 2027
Ryanair and many European airlines hedged their twenty twenty-six fuel costs, but most carriers including Ryanair have no significant hedging from April twenty twenty-seven onwards. O'Leary said Ryanair is eighty five percent unhedged next year.
“We're 85% unhedged next year, and most of the other European airlines are in a similar position.”
Airlines cutting capacity and routes
O'Leary announced Ryanair is cutting twenty routes and more than one million seats from Belgium's winter schedule after the federal government increased aviation tax from two euros to seven euros in January.
Industry warns of bankruptcies ahead
O'Leary predicted rising fuel costs would lead to airline bankruptcies and takeovers. Industry leaders have said some carriers will struggle to survive the fuel price shock, though passenger surveys show travellers are prepared to spend…
The essence
Ryanair's chief executive predicts European air fares could rise by up to twenty percent in twenty twenty-seven as airlines struggle with fuel costs driven by Middle East conflict and lack hedging protection.
