Ryanair has issued a warning that air fares across Europe are expected to increase next year if oil prices continue to stay high, a situation that could also see some airlines fail. The budget carrier has adjusted its passenger target for the year ending 31 March, lowering it from 216 million to 214 million customers.
This reduction aims to lessen the airline's exposure to "unhedged winter oil" during the less profitable off-season, with jet fuel presently priced at $140 (£104) a barrel. Ryanair anticipates that passenger numbers between November and March will be largely consistent with the same period last year.
The company stated that if high oil prices persist into summer 2027, short-haul air fares in Europe are likely to rise significantly. This is expected as some competitors with less hedging against fuel costs may struggle to maintain capacity or survive the upcoming winter season.
Brent crude, the global oil benchmark, reached $97.04 a barrel on Wednesday, its highest point since late July, amid renewed clashes between the US and Iran. The price later eased to just under $95. Ryanair expects its winter schedule cuts to reduce winter losses by €70m (£60m) to €100m, and despite this, anticipates another profitable year, though below last year's record.