Business & Finance

Ryanair warns high oil prices could increase European airfares next year

The budget carrier reduced its annual passenger forecast and trimmed winter capacity to mitigate fuel cost pressures.

Updated Sep 2, 2026 · 09:18 UTC1 reports

The short version

Ryanair warned that short-haul European airfares will jump next year if high oil prices persist, which could also threaten financially weaker airlines.
The carrier reduced its passenger target for the fiscal year ending March 31 from 216 million to 214 million to curb exposure to unhedged winter fuel costs.
The airline expects schedule reductions to lower winter losses by €70 million to €100 million, while projecting full-year profitability supported by fuel hedges.

Ryanair stated that short-haul European flight prices will rise significantly if elevated oil prices persist through summer 2027.[The Guardian]
Ryanair revised its annual passenger projection down to 214 million from 216 million, expecting passenger volumes from November to March to remain broadly flat year-over-year.[The Guardian]
The airline estimated that cutting winter flight schedules will lower seasonal losses by between €70 million and €100 million.[The Guardian]
Ryanair has hedged 80% of its jet fuel needs at $67 a barrel while jet fuel trades around $140 a barrel and Brent crude reached $97.04.[The Guardian]
Competitor Wizz Air reported a 25.9% year-on-year increase in passenger traffic last month, driven by expanded flight capacity.[The Guardian]

The extent of future airfare increases remains dependent on whether global oil prices remain elevated through 2027.[The Guardian]