Ryanair CEO Predicts Historic European Airfare Surge
Michael O'Leary warns that European airfares could rise up to 20% next year due to fuel costs and reduced seat capacity.
Ryanair CEO Michael O'Leary predicted the largest increase in European airfares in history for next year, with ticket prices potentially rising between 10% and 20%. Speaking at a press conference in Brussels on Tuesday, O'Leary attributed the surge to higher jet fuel costs driven by the war in the Middle East and a reduction in available seats following airline bankruptcies and takeovers.
O'Leary warned that fuel surcharges will not fully offset increased oil bills, squeezing airline margins. While Ryanair maintains strong hedge positions through March 2027, the company is only 15% hedged for the following year at $85 per barrel, while spot rates are nearly double that amount.
During the same event, O'Leary announced that Ryanair is removing 20 routes and over one million seats from its winter schedule in Belgium. This decision follows a planned aviation tax increase from €2 to €7. Regarding fleet expansion, O'Leary expressed optimism that the Boeing 737 MAX 10 will receive US certification by the end of October, which would allow the airline to take delivery of 16 aircraft in early 2027.
