RYANAIR CHIEF FORECASTS EUROPEAN AIRFARE RISES OF UP TO 20 PER CENT

Ryanair chief executive Michael O’Leary forecast that European airfares could rise by 10 to 20 per cent over the next 12 months. Speaking at a news conference in Brussels on Tuesday, he said higher jet fuel costs would put pressure on airlines as their fuel price protection expires. “You’re going to see the biggest increase in airfares, I would say, in history in Europe for the next 12 months,” O’Leary said. He also predicted that bankruptcies and takeovers would leave fewer seats available within months.

O’Leary said Ryanair had secured prices for 80 per cent of its fuel through March 2027 at $67 a barrel when the Iran war began at the end of February. He said most European airlines had secured prices for little of their fuel from April 2027. Ryanair had covered 15 per cent of its fuel costs for next year at $85 a barrel, compared with spot prices of about twice that level, he said. The war has driven jet fuel prices higher and squeezed margins at airlines without that protection. O’Leary said airlines would still face “an enormous cost challenge” if the war ended immediately.

Ryanair plans to cut 20 routes and more than a million seats from its winter schedule in Belgium, O’Leary announced in Brussels. Belgium plans to raise its aviation tax from €2 to €7 in January. O’Leary also said he expected US authorities to certify the Boeing 737 MAX 10 this month. He said certification would allow Ryanair to receive 16 of the aircraft in early 2027.