Ryanair's O'Leary says 'insanely higher' jet fuel cost could remain into 2028
O'Leary said airlines will have to pass on fuel costs as jet fuel stays about 50% above prewar levels, squeezing fares and capacity.
- On Thursday, Ryanair CEO Michael O'Leary reassured the industry that Europe faces no jet fuel shortages this winter or before summer 2027, provided no unforeseen events occur.
- Despite supply stability, O'Leary warned that jet fuel remains roughly 50% more expensive than Brent crude, a premium expected to persist for 12 to 18 months due to refinery disruptions.
- Refinery attacks by Ukrainians and Iranians, combined with tanker shortages, create a "real challenge" for capacity. George Shaw of Kpler noted that jet fuel prices are tied to the record-tight diesel market.
- European airlines face an "enormous cost challenge next year," struggling to maintain balance sheets. Ryanair reduced its winter flight schedule last month, cutting its full-year passenger target to 214 million from 216 million.
- Increased imports from Asia, with nearly 900,000 tonnes scheduled to arrive, are expected to keep Europe supplied in the coming months. These shipments, however, are unlikely to bring significant relief on persistently high fuel prices.
32 Articles
32 Articles
European airlines may face high fuel prices for another 12-18 months, which will result in new air ticket charges, at the bottom of the Iran war, warned Michael O'Leary, Director General...
Airfares could become more expensive in the coming months, and price increases could also be extended in 2027. Michael O'Leary, Director General of the Ryanair Group, warns that European airlines will face high fuel prices of 12-18 months. The situation is caused by the war with Iran, which has led to a strong increase in costs for air carriers.
Fears about this had emerged in September because of the increasing geopolitical crises. The Gulf countries, which are major producers of oil and kerosene, are struggling to export their production, due to the war in the Middle East. The oil installations of these countries are attacked both by Iran (it itself attacked by the United States) and by the Huthis rebels of Yemen. In addition to the attacks of Russian refineries by Ukraine, which defe…
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