Ryanair warns European fares could rise 20% next year

Ryanair chief executive Michael O’Leary warned on Monday 2 November that European air fares could rise by as much as 20% next year as the airline braces for a roughly €2 billion increase in its fuel bill.

The expected increase covers the financial year ending in March 2028. O’Leary linked the pressure to the Middle East conflict and higher oil prices, while the airline said higher fares and savings would not fully offset the extra cost.

Fuel hedges offer less protection

Ryanair has already bought about 80% of the fuel it needs for its current financial year at $67 a barrel. Coverage falls to 25% for the following year, at $95 a barrel, leaving the carrier more exposed to price rises.

The airline said fares in the current winter quarter were only modestly higher than a year earlier. In the six months to September, passenger numbers rose 6% to 125.8 million, but net profit fell 15% to €2,148 million after revenue increased 3% to €10,082 million.

Savings under review

The options being considered include temporary pay freezes, slower recruitment, lower crewing ratios and wider use of artificial intelligence in operations and administrative work. Ryanair has not made a final decision on the proposed freezes.

Any change to cabin staffing would remain subject to EU safety rules requiring at least one crew member for every 50 installed passenger seats, including any incomplete group of 50.

In Spain, Ryanair has already removed 1.2 million seats from its regional summer programme and ended its Asturias services, blaming higher airport charges. Commercial chief Eddie Wilson said the airline was still expanding at Málaga, Alicante and Palma.

Sources: Euro Weekly News; Expansión.