Budget Airline Warns Jet Fuel Shock Could Wipe Out Rivals
The airline cut its 2027 passenger target to 214 million and said higher unhedged fuel costs could force weaker rivals to trim winter capacity.
- Ryanair warned on Wednesday that European short-haul airfares could "increase materially" if oil prices remain high into 2027, cautioning that persistent costs might force some competitors to "struggle to maintain capacity or even survive."
- Escalating conflict in the Middle East continues to drive global oil prices, which have climbed above 95 dollars, while jet fuel costs have surged 74.2% over the past year to approximately 156 US dollars per barrel, according to the International Air Transport Association.
- Ryanair remains well-positioned for profitability after hedging roughly 80 per cent of its 2027 fuel needs at 67 US dollars per barrel, though the airline reduced its 2027 passenger target from 216 million to 214 million to limit exposure.
- Rival Wizz Air reported passenger numbers grew by 25.9% last month, while Ryanair noted that reducing exposure during the unprofitable winter schedule between November and March is "sensible" to maintain stability.
- Summer traffic growth remains on track, with Ryanair expecting an increase of more than 5% to 145 million passengers, though air traffic over the winter period will be "broadly flat" compared with the previous year.
15 Articles
15 Articles
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The Independent
The Independent (US)Ryanair says airfares could increase in 2027. Here’s why
Budget Airline Warns Jet Fuel Shock Could Wipe Out Rivals
Ryanair has warned that the price of jet fuel could soar next summer, threatening some of its European competitors with collapse. The budget airline said it has taken emergency measures to protect itself from the higher jet fuel prices caused by the Iran war, trimming its passenger targets from 216m to 214m for this year. The Dublin-based firm said it has secured fixed-price contracts for 80 per cent of its fuel needs for the coming year, but …
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