Ryanair warns of sharply rising fares as fuel costs surge

Summarised from 2 outlets · Updated 2 Nov, 16:28 · Archive

Ryanair says European short-haul airfares will rise materially in 2027 due to higher jet fuel costs.

Ryanair has announced it expects jet fuel prices to remain elevated well into 2027 due to the Middle East conflict. The airline currently has approximately 80% of its jet fuel hedged at prices considerably lower than the current market rate, but this arrangement expires at the end of the financial year. Consequently, Ryanair is forecasting an increase of around two billion euros in its fuel expenditure for the year to March 2028.

The airline states that European short-haul airfares will increase materially to account for the higher fuel costs, though it acknowledges this is unlikely to fully compensate for the rise. Dan Coatsworth, head of markets at AJ Bell, warned that travellers should brace for a sharp increase in flying costs unless oil prices fall substantially. He noted that airlines may respond by raising baggage charges, increasing onboard food and drink costs, and operating with fewer staff.

Ryanair is scrutinising all outgoings to manage the impact. The company is weighing pay freezes and reduced crewing ratios, as well as increased use of artificial intelligence to improve operational efficiency. The airline also reduced its annual traffic target from 216 million to 214 million passengers earlier this year. Ryanair reported that post-tax profit fell 15% to 2.15 billion euros for the half-year to September, though revenues grew 3% to 10.08 billion euros.

How it is being reported

• Warning: Travellers should 'brace for sharp increase in cost of flying'Travellers should 'brace for a sharp increase in the cost of flying'. That was the warning today after Ryanair issued a key update.The Herald · 2 Nov, 15:22
• Ryanair warns of fare rises and pay freezes as fuel costs set to surge in 2027Ryanair has said European short-haul airfares are expected to rise in 2027Glasgow Live · 2 Nov, 11:50

In this story: Ryanair · Europe · Middle East · Dan Coatsworth · AJ Bell

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log