Ryanair CEO Warns of Record European Airfare Surge as Fuel Costs Bite

Ryanair CEO Michael O'Leary warned European airfares could rise by as much as 20pc over the next 12 months, calling it the steepest increase in history as airlines pass on soaring oil costs driven by the Middle East conflict. He said the increases likely won't be enough to cover higher fuel bills. Jet fuel prices have surged 113pc to $192 a barrel since the start of 2026, more than double the rise in crude. O'Leary said Ryanair has no hedging protection for 85pc of its estimated fuel needs for next year, and that most other European carriers face similar exposure as hedging positions unwind. Ryanair shares fell about 2pc on the remarks, extending their decline to 25pc this year. The airline cut around 4pc of winter capacity, expecting to carry two million fewer passengers, and EasyJet is removing a further 3,500 flights. Iata has warned rising fuel costs could deal a $100bn blow to aviation this year, pressure that has already triggered Spirit Airlines' collapse.