O'Leary: Ryanair won't add fuel surcharge, but fares may rise 10-20% next summer
CEO predicts higher airfares if oil prices stay elevated, hopes fuel costs will force weaker competitors out.
What to know
- Ryanair will not impose fuel surcharges, but expects industry-wide airfares to rise 10-20% next summer if oil remains costly.
- Airlines' fuel hedges expire after summer 2026, leaving them vulnerable to higher fuel costs starting in 2027.
- O'Leary explicitly hopes higher fuel prices will force weaker competitors out and accelerate consolidation to four major European carriers.
“Airlines who are currently loss-making will fail. It will accelerate the consolidation of Europe into four large airlines: BA [British Airways], Lufthansa, Air France, and Ryanair”
Michael O'Leary, Ryanair Group CEO · Jerusalem Post ↗
Michael O'Leary Ryanair Group CEO
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O'Leary hopes fuel costs will accelerate airline consolidation in Europe — O'Leary said he hopes jet fuel prices will rise faster into next year to accelerate consolidation, with loss-making airlines failing and the market narrowing to four large carriers: British Airways, Lufthansa, Air France, and Ryanair.
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O'Leary announces Ryanair will not levy fuel surcharge despite cost pressures — O'Leary stated that Ryanair will not impose a fuel surcharge on passengers, even as hedging agreements expire and airlines face higher fuel costs going into 2027. He predicted competitors may introduce surcharges and forecast industry consolidation.
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O'Leary predicts 10-20% airfare increases if oil prices stay high
Ryanair CEO Michael O'Leary told reporters on Wednesday that airfares may need to rise by 10%, 15%, or 20% next summer if oil prices remain at current elevated levels.
“IF OIL PRICES REMAIN THIS HIGH INTO SUMMER OF 2027, I EXPECT AIRFARES TO RISE BY 10, 15, 20%…”
— Michael O'Leary -
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LONDON, Sept 23 (Reuters) - Airfares will need to rise by between 10% and 20% next summer if oil prices stay at their current elevated level over the coming months, Ryanair group CEO Michael O'Leary said on Wednesday. @reuters.com
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* RYANAIR CEO O'LEARY: IF OIL PRICES REMAIN THIS HIGH INTO SUMMER OF 2027, I EXPECT AIRFARES TO RISE BY 10, 15, 20% @reuters.com
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