Ryanair rules out fuel surcharge as O’Leary predicts higher fares at rival airlines

Dublin, Ireland. Ryanair group CEO Michael O’Leary said Wednesday the airline would not impose a fuel surcharge despite higher jet fuel prices. He predicted that rivals would raise fares next summer and that the costs would accelerate consolidation among European airlines.

Ryanair lowers passenger forecast

Ryanair reduced its forecast for passengers flown in fiscal 2027 from 216 million to 214 million, citing planned capacity limits intended to reduce the impact of the small proportion of its jet fuel needs that is not hedged.

O’Leary said Ryanair was well placed to withstand further pressure from fuel costs. He said most airlines were hedged into summer 2026, allowing them to absorb this summer’s increase in oil prices, but would be unable to absorb similarly high prices next year.

He predicted that rival airlines, particularly legacy carriers, would introduce fuel surcharges or higher fares next summer. Ryanair, he said, would not levy a fuel surcharge.

More airline failures predicted

Global airlines have struggled with rising jet fuel costs. airBaltic is the latest to announce that it is entering Chapter 11 bankruptcy proceedings.

O’Leary said Ryanair was already speaking with airports concerned that further airline bankruptcies could reduce capacity. He said he expected more loss-making carriers to fail and fares at other airlines to rise by 10% to 20% next summer.

He added that he hoped jet fuel prices would rise faster next year, saying this would hasten the failure of other airlines and accelerate consolidation in Europe around four large airlines: British Airways, Lufthansa, Air France and Ryanair.