Ryanair CEO O'Leary Rules Out Fuel Surcharge as Oil Prices Climb
Ryanair's Stance on Fuel Surcharges Amid Rising Oil Prices
CEO O'Leary's Statement on Surcharges
LONDON, Sept 23 (Reuters) - Ryanair group CEO Michael O'Leary said on Wednesday the airline "will not levy a fuel surcharge" amid higher prices for jet oil, though he predicted rivals may do so, and forecast more consolidation in the sector as a result of elevated fuel costs.
Hedging Strategies and Industry Impact
He told reporters: "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.
"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."
Predictions for Airline Consolidation
O'Leary added: "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.
"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."
Reporting Credits
(Reporting by Joanna Plucinska; writing by Sam Tobin; editing by Sarah Young)
