Ryanair CEO Michael O’Leary told CNBC that European airfares could rise by 10% to 20% in 2027 as fuel hedges expire. Jet fuel currently costs $170 per barrel amid an unresolved situation in the Middle East. The airline’s profit fell 15% to 2.15 billion euros in the first fiscal half, while the price of the 20% of jet fuel left unhedged doubled. Ryanair does not expect higher fares on short-haul routes to fully offset an estimated 2 billion euro increase in fuel costs. The company is therefore launching a cost review that includes reducing crew rations, temporarily freezing pay and using artificial intelligence to drive further efficiencies.
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