Ryanair warns of double-digit fare rises as fuel bill faces €2bn increase
Ryanair expects European short-haul fares to rise materially in 2027 as its fuel costs increase, with the airline forecasting a roughly €2bn jump in its fuel bill for the year to March 2028. Chief executive Michael O’Leary has warned that fares could rise by as much as 20%, while the company reviews costs including staffing, airport charges and greater use of AI.
Bottom line — Ryanair has hedged 80% of its fuel needs only until the end of March 2027, leaving the next financial year more exposed to market prices.
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Ryanair’s half-year net profit fell 15% to €2.15bn, while operating costs rose 10% to €7.69bn, the Liverpool Echo reports.
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Daily News Hungary reports that Ryanair has hedged 25% of its fuel needs for the following 12 months at an average of $95 (€87) per barrel.
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The company is considering temporary pay freezes, lower crewing ratios and using AI in back-office and support functions, according to the Liverpool Echo.
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Ryanair carried 19.4m passengers in October, up 1% year on year, with its load factor unchanged at 93%, London South East reports.
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The Financial Times says fuel is forecast to account for 44% of Ryanair’s revenue next year, up from 37% this year.