Ryanair CEO says airline will not levy fuel surcharge
Michael O'Leary said rivals may add fuel surcharges as higher oil prices squeeze airlines and Ryanair trims capacity to limit unhedged fuel exposure.
- On Wednesday, Ryanair Group CEO Michael announced the airline "will not levy a fuel surcharge" despite higher jet fuel prices, though he predicted rivals would pass costs to customers next summer.
- Most airlines hedged fuel costs through summer 2026, absorbing initial price shocks; as those agreements expire, Leary noted companies face higher expenses, necessitating price adjustments next year.
- Airfares could rise by 10%, 15%, or 20% next summer if oil prices remain elevated, Leary warned; he added that while Ryanair maintains its stance, "the legacy guys certainly will" add surcharges.
- Higher fuel prices may accelerate consolidation in the European aviation market, potentially forcing weaker airlines to fail, affecting carriers like British Airways, Lufthansa, and Air France.
- Ryanair expects to receive 15 Boeing 737 MAX 10 aircraft in the Spring, pending certification in the coming weeks; the airline operates high-density MAX 8s and holds options for 150 additional jets.
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Disruptions in the Strait of Hormuz and rising global oil prices are negatively impacting the airline industry. Ryanair CEO Michael O'Leary stated that high fuel costs could increase airfares by up to 20% this summer, and some carriers may reduce prices during the winter period.
Traditional airlines could increase flight prices by up to 20% in the summer of 2027, Ryanair chief executive Michael O'Leary has warned. The low-cost carrier says higher fuel prices will no longer be absorbed by operators and some of the costs will eventually be passed on to passengers.
Ryanair CEO Michael O'Leary has warned that airfares could become significantly more expensive next year due to soaring oil prices and the Iran conflict. The Irish budget airline has already cut its passenger traffic target for next year, The Journal reported.
DUE to the rise in oil prices, instead of falling, flight prices are expected to be stable or slightly higher this winter.
Ryanair boss says flights in summer 2027 could rise by 10-20% Michael O'Leary said expensive gas could raise <p>ticket prices by 10-20% in summer 2027. Competitors can introduce fuel surcharges.</p>
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