Michael O’Leary, CEO of Ryanair, estimates that airfares could rise by 10%-20% next summer amid higher aviation fuel costs. He warns that airlines will no longer be able to absorb these expenses in full and will pass them on to passengers.
O’Leary explained that most airlines have been protected until summer 2026 by hedging contracts, which have limited the impact of rising oil prices. The situation could change next year, when higher costs could be reflected directly in fares or imposed as fuel surcharges.
Ryanair does not intend to introduce such a surcharge, but the company’s CEO expects traditional carriers to apply one. He also anticipates further bankruptcies in the European airline industry, particularly among companies already reporting losses. According to O’Leary, this would accelerate market consolidation around groups such as British Airways, Lufthansa, Air France and Ryanair.
Meanwhile, Ryanair has lowered its forecast for fiscal year 2027 from 216 million to 214 million passengers due to planned capacity constraints. However, the company says it is well positioned to withstand the pressures generated by higher fuel costs.
ஸ,Sources
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