Ryanair issues major jet fuel warning 'well into 2027'
Ryanair has warned that the price of jet fuel will not come down over the next year and increased air fares may not be enough to offset rising costs. The budget airline said it is considering pay freezes and increased use of AI to help offset a surge in fuel costs next year. It expects jet fuel prices to “remain elevated well into 2027” amid the conflict in the Middle East. The company currently has around 80% of its jet fuel hedged at much lower prices than the market rate, but this will expire at the end of the financial year.
TL;DR
- Ryanair forecasts jet fuel prices to remain high well into 2027, with a predicted €2 billion increase in its annual fuel bill.
- Current jet fuel hedging at lower prices expires at the end of the financial year.
- The airline is considering cost-saving measures such as pay freezes and increased use of AI.
- European short-haul airfares are expected to rise materially but may not fully cover increased fuel costs.
- Profit after tax fell 15% to €2.15 billion in the half-year to September, with operating costs up 10%.
- Ryanair previously cut its traffic target from 216 million to 214 million passengers to offset unhedged fuel costs.
- Visibility for future bookings is reduced due to closer booking windows.