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Ryanair CEO pledges not to hit passengers with fuel surcharge - Finance news and analysis from Global Banking & Finance Review
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Ryanair CEO pledges not to hit passengers with fuel surcharge

Published by Global Banking & Finance Review

Posted on September 23, 2026

2 min read

· Last updated: September 23, 2026

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Ryanair CEO: No Fuel Surcharge for Passengers Despite Higher Jet Fuel Prices

Ryanair's Response to Rising Jet Fuel Costs

By Joanna Plucinska

Rising Jet Fuel Prices and Industry Impact

LONDON, Sept 23 (Reuters) - Ryanair group CEO Michael O'Leary said on Wednesday the airline "will not levy a fuel surcharge" despite higher jet fuel prices, but predicted rivals will do so next summer and forecast more European consolidation as a result of the elevated costs.

Global airlines have struggled with the spiralling cost of jet fuel, with airBaltic the latest to announce it was entering Chapter 11 bankruptcy proceedings.

Ryanair's Passenger Forecast and Capacity Adjustments

Meanwhile, Ryanair cut its forecast for passengers flown from 216 million to 214 million for fiscal 2027 as a result of planned limits to capacity in an effort to lessen the impact of its small percentage of unhedged jet fuel. 

O'Leary's Confidence in Ryanair's Position

O'Leary said Ryanair was in a strong position to weather further challenges associated with high jet fuel prices.

Hedging Strategies and Future Predictions

"Most of the airlines were well hedged into the summer of 2026, and therefore we absorb the kind of shock of the much higher oil prices this summer," he told reporters.

"None of us will be able to absorb those much higher oil prices next year ... and it will get passed on in the form of fuel surcharges on higher airfares.

"Ryanair will not levy a fuel surcharge, but the legacy guys certainly will next summer."

Industry Consolidation and Airline Failures

O'Leary said he expected more carriers to fail, adding that Ryanair was already in talks with airports concerned that capacity will be cut by further airline bankruptcies. 

Expectations for Airfare Increases and Market Consolidation

"I very much hope that jet (fuel) prices will rise faster into next year because that will accelerate the extent to which other airlines will fail," he said, adding that he expected airfares at other carriers to rise by 10% to 20% next summer. 

"Airlines who are currently loss-making will fail. It will accelerate the consolidation of Europe into four large airlines: BA (British Airways), Lufthansa, Air France and Ryanair," he said.

(Reporting by Joanna Plucinska; writing by Sam Tobin; editing by Sarah Young and Alexander Smith)

Key Takeaways

  • Ryanair pledges no fuel surcharge even as jet fuel prices climb, gaining competitive advantage over legacy carriers. (marketscreener.com)
  • airBaltic has entered Chapter 11 bankruptcy due to soaring fuel costs tied to the Iran war, underscoring the sector’s distress. (investing.com)
  • O’Leary forecasts a 10–20 % fare increase by legacy airlines next summer and says consolidation will leave Europe served by four major carriers: British Airways, Lufthansa, Air France and Ryanair. (marketscreener.com)

References

Frequently Asked Questions

Will Ryanair introduce a fuel surcharge for passengers?
No, Ryanair CEO Michael O'Leary has stated that the airline will not levy a fuel surcharge, despite higher jet fuel prices.
Why are airlines considering a fuel surcharge?
Higher jet fuel prices are causing increased operational costs, prompting many airlines to consider passing these costs to passengers via fuel surcharges.
How does Ryanair plan to handle rising jet fuel costs?
Ryanair is mostly hedged against fuel price increases until summer 2026 and plans to limit capacity to mitigate the impact.
What is the outlook for other European airlines?
Ryanair's CEO expects more airlines to go bankrupt and predicts industry consolidation into four major carriers in Europe.
How will airfares be affected by high jet fuel prices?
Ryanair predicts that airfares at other airlines may rise by 10% to 20% next summer due to increased costs.

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