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Ryanair CEO Warns European Fares Could Rise Up to 20% in 2027
Ryanair CEO Michael O'Leary warns European airfares could rise up to 20% in 2027 as fuel costs climb.
Key points
- Ryanair's profit fell 15% to 2.15 billion euros ($2.3 billion) in the first fiscal half.
- Jet oil is currently $170 a barrel, and Ryanair's fuel hedges are expiring.
- Ryanair estimates a 2-billion-euro increase in fuel charges and is launching a cost review.
Why it matters. Higher fuel costs could push European airfares up, and Ryanair's cost review may affect crew rations, pay and its use of AI.
Ryanair chief executive Michael O'Leary told CNBC on Monday that European airfares are set to rise by 10%, maybe even 20%, next year as fuel hedges expire. The budget carrier's profit fell 15% to 2.15 billion euros ($2.3 billion) in the first fiscal half as the price of its unhedged jet fuel doubled. Ryanair does not expect fares to fully offset an estimated 2-billion-euro rise in fuel charges, so it is launching a cost review including a potential temporary pay freeze.
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Ryanair CEO Warns European Fares Could Rise Up to 20% in 2027
Ryanair CEO Michael O'Leary told CNBC that European airlines may charge significantly higher fares next year. He said fares could rise by as much as 20% in 2027. The increase is linked to fuel hedges expiring. Ryanair's profit fell 15% to 2.15 billion euros ($2.3 billion) in the first fiscal half. The airline's unhedged jet fuel, which accounts for 20%, doubled in price.