Ryanair Warns of Higher Air Fares and Bust Airlines Due to Rising Fuel Costs

Ryanair has warned that European short-haul air fares – across the board - are likely to rise materially over the next 12 months if high oil prices persist; and has claimed that some airlines may even struggle to survive the current climate.

Earlier this week, Ryanair lowered its passenger expectations for its current financial year (up to March 31, 2027), from 216 million customers to 214 million reflecting a lowering of its capacity in a bid to shield itself from exposure to fuel prices it isn’t hedged on.

Ryanair remains 80% hedged – at around $67 per barrel – on fuel needs for its current financial year.

Ryanair said its one-off winter schedule cut should reduce its winter 2026 losses by €70m.

The airline said: “If high oil prices continue through to summer 2027, Ryanair believes short haul airfares in Europe will increase materially to reflect higher oil prices, as some less well-hedged competitors will struggle to maintain capacity or even survive this coming winter season.”