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Ryanair's O'Leary says jet fuel cost will stay high into 2028 - Finance news and analysis from Global Banking & Finance Review
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Ryanair's O'Leary says jet fuel cost will stay high into 2028

Published by Global Banking & Finance Review

Posted on October 8, 2026

1 min read

· Last updated: October 8, 2026

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Ryanair CEO Warns Jet Fuel Prices to Remain High Until 2028

Jet Fuel Price Outlook and Impact on European Airlines

By Julia Payne and Joanna Plucinska

Current Jet Fuel Price Trends

BRUSSELS/LONDON, Oct 8 (Reuters) - The cost of jet fuel is likely to remain high for the next 12 to 18 months, Ryanair Group Chief Executive Michael O'Leary said on Thursday, but he stressed that he does not expect fuel supply to run out anytime soon.

Challenges for European Airlines

European airlines have struggled to maintain their balance sheets this year as the cost of jet fuel skyrocketed due to the Iran war. While European airlines remain well-hedged, the volatility has still led to capacity cuts and cost-saving measures. 

O'Leary's Perspective

"It's currently running at about 50% more expensive, and I don't see that changing for the next 12 to 18 months," O'Leary told reporters. 

Industry Response

O'Leary was speaking during an Airlines for Europe (A4E) press conference, which included the CEOs of Air France-KLM, Lufthansa, easyJet and British Airways-owner IAG. 

Future Cost Challenges

"We are all facing an enormous cost challenge next year," he added. 

(Reporting by Julia Payne and Joanna Plucinska; Editing by Joe Bavier)

Key Takeaways

  • Jet fuel costs have doubled or surged roughly 50%, driven largely by disruptions from the Iran conflict and supply-chain constraints (www-ade.iata.org).
  • European airlines remain well‑hedged, with Ryanair alone covering ~80% of its fuel through March 2027 at favorable rates, cushioning the impact (investor.ryanair.com).
  • Though hedging offers short‑term protection, the persistent high fuel prices pose ongoing cost and capacity challenges across the sector well into late 2027 and possibly 2028 (iata.org).

References

Frequently Asked Questions

How long does Ryanair expect jet fuel prices to remain high?
Ryanair's CEO Michael O'Leary says jet fuel prices are likely to stay high for the next 12 to 18 months.
What factors are causing high jet fuel prices in Europe?
Jet fuel prices have increased mainly due to the Iran war and resulting market volatility.
How are European airlines responding to increased fuel costs?
European airlines have implemented capacity cuts and cost-saving measures to manage higher fuel expenses.
Is there any risk of fuel supply running out?
Michael O'Leary stated there is no expectation of jet fuel supply running out anytime soon.

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