Key facts
- Ryanair warns soaring jet fuel prices could lead to the collapse of some European competitors.
- The airline has secured fixed-price contracts for 80% of its fuel needs for the coming year.
- Ryanair is cutting some flights to reduce fuel purchases at market rates, expecting to soften winter losses by €70m to €100m.
- Ryanair expects airfares in Europe to increase materially next summer if high oil prices persist.
- Brent crude touched $97.04 a barrel, its highest since late July, due to concerns over supply amid US-Iran clashes.
Ryanair has warned that soaring jet fuel prices, exacerbated by the Iran war and renewed clashes between the US and Iran, could lead to the collapse of some European competitors. The Irish budget carrier has cut its passenger target for the year to 31 March from 216 million to 214 million to reduce exposure to unhedged winter oil. Jet fuel is currently trading at $140 (£104) a barrel, and Brent crude touched $97.04 on Wednesday, the highest since late July.
Ryanair expects passenger numbers between November and March to be broadly flat compared with the same period last year. The company stated that if high oil prices continue through to summer 2027, short-haul airfares in Europe will increase materially, as less well-hedged competitors will struggle to maintain capacity or survive. Ryanair expects the cut to its winter schedule to reduce its winter losses by €70m (£60m) to €100m. Because it has hedged 80% of its jet fuel at $67 a barrel, it expects another profitable year, albeit below last year's record profit after tax.
The airline said it was on track to increase summer passenger numbers – between April and October – by more than 5% from 138 million to 145 million. Fares are drifting modestly down between August and September compared with last year. Wizz Air, a rival budget airline, reported on Wednesday that its passenger numbers had grown by 25.9% last month compared with a year earlier, driven by a jump in flight capacity.
Ryanair was forced to reassure travellers in July that its planes were safe after a passenger was saved from being sucked out of a window mid-flight.