Ryanair rules out fuel surcharge as O'Leary warns of carrier failures in Europe

Ryanair will not add a fuel surcharge for passengers despite higher fuel costs, chief executive Michael O'Leary said. He told reporters that traditional carriers would almost certainly introduce such charges next summer.

Most airlines held fuel hedges covering the summer of 2026, which softened the effect of higher crude prices, according to the account. Those hedges expire. O'Leary said no carrier will be able to absorb the elevated oil prices next year without changing its commercial policy, and he estimated other operators' fares will rise by between 10% and 20% next summer as a result of the surcharges. Ryanair says its own financial position is strong enough to handle the cost pressure.

The airline has placed planned limits on capacity to limit its exposure to the small share of fuel it has left unhedged. Passenger numbers for the financial year ending in March 2027 were cut from 216 million to 214 million.

Higher fuel prices are already affecting regional operators in Europe. airBaltic was the most recent to announce it had entered insolvency proceedings, according to the article.