Ryanair chief executive Michael O’Leary has warned that jet fuel prices could remain elevated for another 12 to 18 months, a view that points to pressure on European airline margins and fares well into 2027. Speaking in Brussels at an Airlines for Europe press conference, he said fuel is about 50% more expensive than before the Iran war and dismissed any immediate risk of shortages in Europe this winter or next summer.
O’Leary framed the problem as a cost issue rather than a supply problem, saying airlines face an “enormous” challenge as many carriers head into 2027 with less fuel hedging than Ryanair. He argued that the industry will have to pass on higher costs to passengers, pushing up fares across the market if crude-linked fuel prices stay at current levels.
The warning comes after Ryanair last month cut its winter flight schedule and reduced its full-year passenger target from 216 million to 214 million because of higher fuel costs. The airline has already moved to limit exposure to the market, while O’Leary indicated that the latest fuel shock could extend farther than many carriers had planned for, making cost control a central issue for the sector over the next two summers.