Ryanair Sees an Estimated $2.2 Billion Fuel Cost Increase

Ryanair expects an estimated $2.2 billion increase in fuel costs, while CEO Michael O’Leary separately forecast European airfares could rise 10% to 20% in 2027.

The airline has hedged 80% of its jet fuel at about $67 a barrel through March 2027. Ryanair does not expect higher short-haul fares to offset the full increase.

The forecast comes as the price of the airline’s unhedged jet fuel doubled in the first half of its fiscal year. Ryanair’s profit fell 15% to $2.3 billion over the same period.

The airline’s companywide cost review includes lower crewing ratios, a possible temporary pay freeze and using AI to improve efficiency.