Ryanair to cut winter flights in Europe to save on fuel costs

Irish budget airline Ryanair has warned that air fares in Europe could rise significantly next year if the oil price remains high, potentially leading to some airlines going out of business. The carrier has reduced its passenger targets for the year, cutting them from 216 million to 214 million, in an effort to lessen its exposure to "unhedged winter oil" during the off-season.

Jet fuel is currently trading at $140 (£104) per barrel. Ryanair anticipates that passenger numbers will be relatively stable between November and March compared to the same period last year. The company predicts that if high oil prices persist through the summer of 2027, short-haul air fares in Europe will increase substantially to reflect the higher oil costs, as some less hedged competitors may struggle to maintain capacity or even survive the upcoming winter season.

Brent crude, the global oil benchmark, reached a high of $97.04 per barrel on Wednesday, following renewed tensions between the US and Iran that raised concerns about supply. After briefly climbing back to just below $95, the price then settled at that level. Ryanair hopes that cutting its winter schedule will cut its winter losses from €70m (£60m) to €100m.

Despite this, the airline expects to record a profitable year, albeit below last year's record profit after tax. The carrier remains on track to boost summer passenger numbers, increasing them by over 5% from 138 million to 145 million between April and October. Although fares have slightly decreased between August and September compared to last year, this trend is "modest."

Meanwhile, rival budget airline Wizz Air reported a 25.9% increase in passenger numbers last month compared to the same period a year earlier, driven by a rise in flight capacity.