European Airlines Cut Capacity as Jet Fuel Costs Surge
Ryanair, easyJet, and Jet2 are reducing flight capacity and raising passenger fares to offset surging jet fuel costs driven by conflict involving Iran.
European budget airlines are reducing flight capacity and raising ticket prices to combat a fuel crisis driven by conflict involving Iran and supply chain disruptions in the Strait of Hormuz. Michael O'Leary, CEO of Ryanair Group, warned that jet fuel costs remain roughly 50% higher than pre-war levels and could persist for 12 to 18 months, with effects lasting into 2028.
In response to these costs, easyJet is cutting between 600,000 and 700,000 seats from its winter schedule, bringing its total reductions for the 2026–2027 season to approximately 1.4 million seats. Jet2 announced a reduction of 200,000 seats for the same period, while Ryanair lowered its 2027 traffic target from 216 million to 214 million passengers. O'Leary predicted that fares could rise by up to 20% next summer as fuel hedging diminishes.
Despite the capacity cuts, some expansion continues. easyJet plans to add a fourth aircraft to its Southend Airport base by summer 2027, and Ryanair is adding new winter routes from Stansted Airport to Glasgow, Malmo, and Parma. O'Leary asserted that while costs are high, fuel availability in Europe remains secure through next summer.
Separately, during an Airlines for Europe press conference, Lufthansa CEO Carsten Spohr addressed a recent flydubai cockpit attack, stating that absolute security in the aviation industry is impossible despite robust pilot mental health checks.
